los angeles housing department affordable housing trust fund notice of funding availability 2010...
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Los Angeles Housing DepartmentLos Angeles Housing Department Affordable Housing Trust FundAffordable Housing Trust FundNotice of Funding AvailabilityNotice of Funding Availability
2010 Round 32010 Round 3
Douglas Guthrie General Manager
Helmi Hisserich Tim ElliottAssistant General Manager Major Projects Division
September 15, 2010
Los Angeles Housing Department
Los Angeles Affordable Housing Trust Fund 2010 Round 2 NOFA
NOFA Round 1 “High Leverage Program” $22.1 Million
Announced November 24, 2009Application Deadline December 21, 2009LAHD Awards March 01, 2010TCAC Deadline March 26, 2010
Applications Received 29 $128 MSelected 7 $ 22.1 M
NOFA Round 2 “High Leverage & $35 Million Permanent Supportive Housing” Announced March 24, 2010
Application Deadline April 24, 2010LAHD Awards June 30, 2010TCAC Deadline July 7, 2010Applications Received 19 $84.2 MSelected 7 $ 35 M
Los Angeles Housing Department
PROPOSED… NOFA Round 3
“Neighborhood Stabilization & Energy Efficiency”
$47 Million (Estimated)
Announced September __, 2010Application Deadline November __ 2010LAHD Awards December / JanuaryNSP Expenditure Dec 2011
EEBG Committed Jan 2011
Los Angeles Housing Department
TODAY’s DISCUSSION
SHOULD LAHD PURSUE 2011 NOFAs IN THE SAME WAY AS 2010?
QUESTIONS ABOUT PROPOSED CHANGES TO ROUND 3 NOFA
Los Angeles Housing Department
RECAP OF 2010 AHTF ROUND 2
26 applications requested $85 million$35.5 million in commitments awarded
Family projects 2 Seniors projects 5
Special Needs 6 Total 13
Applying for MHP 2 (Seniors)Received 9% Tax Credit 4
Family projects 1 Seniors projects 0
Special Needs 3
AVAILABLE RESOURCES – 2010 ROUND 3
$8 million in HOME funds
$35 million in Neighborhood Stabilization Program 2 (NSP2) funds
$4.7 million in Energy Efficiency Block Grant (EEBG) funds
Four City-owned properties for acquisition/rehabilitation
Los Angeles Housing Department
CHANGES FOR 2010 Round 3
ELIGIBLE PROJECTS/PROPOSALS• Mixed income, privately funded projects
• Projects in NSP2 target areas
• Existing affordable housing projects that propose energy efficiency increases of 20 - 40%
• Proposals for the acquisition and rehabilitation of four City-owned properties
Los Angeles Housing Department
Mixed Income Projects
Ineligible projects include:
Projects with more than 50% of the total units to be income restricted
Projects with less than 50% of the LAHD assisted units with fewer than two bedrooms (excluding seniors)
Projects with fewer than 15 units to be restricted by LAHD
Projects requesting subsidy for units subject to affordability covenants
Los Angeles Housing Department
Mixed Income (Cont.)
Maximum subsidy shall be the lesser of the
1.Value of the covenant2. Adjusted loan limits 3. $4.0 per project
Applications will be ranked according to the highest ratio of the value of the covenant relative to the maximum eligible subsidy
Los Angeles Housing Department
VALUE OF THE COVENANT
Example: A mixed-income project in a high cost area proposing a 30-year affordability covenant (the required minimum):
Equivalent market rent per month for proposed unit: $1,700Proposed HOME Limit @ 50% AMI: - 818Rent Reduction per Month: S882x 12 months x 12Annual Income Reduction $10,584/ .07 current market cap rate (open market rate of return) .07 = Value of Covenant per unit $151,200
Los Angeles Housing Department
Subsidy Limits
Unit Size
LAHD Limits
Limits with 5% Boost
Limits with 10% Boost
Limits with 15% Boost
0-Bdrm $100,000 $100,500 $110,000 $115,000
1 bedroom $107,500 $112,875 $118,250 $123,625
2 bedroom $115,000 $120,750 $126,500 $132,250
3 bedroom $115,000 $120,750 $126,500 $132,250
4 bedroom $115,000 $120,750 $126,500 $132,250
Los Angeles Housing Department
Subsidy Boosts
Historic Properties (10% boost) - NEW Extended Affordability Covenants (5% for each 10-year
increment beyond the 30 year minimum, up to 15%) - NEW
Projects located in Balanced Communities (5%) Projects with New Generation Fund (NGF) acquisition
loans (5%) Projects located in Transit-Oriented Districts (5%) Projects located in South Los Angeles (5%)
Los Angeles Housing Department
Subsidy Adjustments
• Occupied units within mixed-income projects that are not subject to the City of Los Angeles Rent Stabilization Ordinance (RSO) are limited to 75% of the maximum subsidy
• Occupied units subject to the RSO are limited to 40% of the maximum subsidy limits
Los Angeles Housing Department
NOFA Maximum Subsidy vs. Value of Covenant
Bedrooms Units Max. Base Subsidy per
unit
Adjusted Max. Subsidy (addl. 5% for high cost boost)
Total
1 bedroom 20 $107,500 $112,875 $2,257,500
2 bedroom 21 $115,000 $120,750 $2,535,750
NOFA Max Subsidy $4,793,250
Value of Covenant 41 $151,200 $6,199,200
Los Angeles Housing Department
Ranking – Mixed Income Projects
Value of Covenant $6,199,200 Maximum NOFA Subsidy $4,793,250 = Ranking Ratio 1.2933
or 129%Actual loan amount $4.0 Million
Los Angeles Housing Department
Neighborhood Stabilization Program (NSP-2)
• $35 Million in NSP2 funds is being made available through the American Recovery and Reinvestment Act of 2009 (ARRA).
• All NSP2 funds awarded under this NOFA must be expended by December 31, 2011 to meet the first ARRA expenditure deadline
Los Angeles Housing Department
NSP-2 Target Area
• Project must be located in an NSP-2 Target Area and in, or immediately adjacent to, a residentially designated land use area.
• Search Map available @ http://lahd.lacity.org/nsp/
Los Angeles Housing Department
Neighborhood Stabilization Program
• Projects submitted under NSP 2 should be structured utilizing 4% Low Income Housing Tax Credits as applicable.
• All units financed with NSP2 must be restricted for occupancy by households whose incomes are at or below 50% AMI (LH25 households)
Los Angeles Housing Department
NSP Acquisition
• Properties must be purchased from a foreclosing entity that has clear title, or
• Where foreclosure proceedings have been completed
and title has been transferred to servicer that is not an end user.
• HUD definition of “abandoned” must demonstrate that seller has site control and sales approval from all lien holders.
Los Angeles Housing Department
Vacant Properties
• Up to $10 million in funds can be used for non-foreclosed vacant properties in NSP2 areas.
• NSP2 funds may be used for acquisition, construction or rehabilitation.
• If using funds are to be used for acquisition costs, the vacant property must have been acquired after the City’s NSP agreement was executed.
Los Angeles Housing Department
NSP Acquisition
• Foreclosed or transferred properties: If any member of the applicant/ sponsor entity is a member of the current ownership entity, the project does not qualify for NSP funding.
• Project sponsors must not acquire foreclosed or abandoned property until after the funding is committed and the property has received environmental clearance from LAHD.
Los Angeles Housing Department
NSP funds for homeless households
• Priority for the first 20 percent (20%) of NSP funds shall be given to projects providing permanent supportive housing to homeless households and individuals.
• Projects must have rental or operating funding commitments from federal, state or local governmental sources.
• Rental assistance must be sponsor-based or project based and shall apply to no less than fifty percent (50%) of the units in the proposed project.
Los Angeles Housing Department
Purchase Price
• Maximum allowable purchase price must be at least 1% below the as-is appraised value.
• Appraisal prepared by a California State Certified General Appraiser not more than 60 days prior to the date of the site control document.
• Appraiser must use the HUD forms and follow the requirements in NSP Exhibit 2.
Los Angeles Housing Department
Maximum Subsidy
• NSP subsidy will be based on 200% of base limits exclusive of any boosts or adjustments.
Los Angeles Housing Department
Energy Efficiency and Conservation Block Grant (EECBG)
• The City has been awarded funding under the 2009 ARRA through the U.S. Department of Energy (DOE)
• $4.7 million has been allocated to LAHD for the Energy Efficiency Retrofit Pilot Program
• The goal is to improve energy and water efficiency in approximately 10 existing affordable multi-family housing developments by awarding a maximum of $500,000 per project
Los Angeles Housing Department
Eligible Projects - EEBG
• Properties with affordability covenants of an initial term of 30 years minimum, that can achieve a 20% to 40% improvement in energy efficiency
Los Angeles Housing Department
Energy Audit
• EEBG applicants that pass the initial screening will be invited to submit an Energy Audit
• Energy audit must be conducted by a certified professional satisfactory to LAHD
• The audit will determine baseline energy usage and establish a scope of work
• Projects that cannot achieve a minimum 20% improvement may be deemed ineligible for funding
Los Angeles Housing Department
EEBG Applications
• Applicants must submit utility bills for the most recent 24 months of occupancy.
• Enterprise Community Partners will assist with initial screening.
• Funding for energy audits for non-profits may be available through Enterprise.
Los Angeles Housing Department
Sale of City-owned Properties
• LAHD is requesting proposals for the acquisition and rehabilitation of four City-owned properties.
• Selected applicants will enter into an Exclusive Right to Negotiate leading to a Disposition and Development Agreement, which will contain the loan amount and terms.
• Rehabilitation financing is available through other funding sources listed in this NOFA.
Los Angeles Housing Department
City-owned properties
Applicants may acquire the following sites for long-term affordable multi-family rental housing:Address Units
2516 Eastlake Av. and 53211-3213 ½ Altura Walk819 W. 4th Street 10 851 W. 81st Street 8252 Rampart Blvd. 1
Los Angeles Housing Department
LAHD Financing of City-owned Properties
Rehabilitation financing is available from applicable funding sources under this NOFA.
Applicants should assume the LAHD’s current appraised value.
Acquisition cost will be included in residual receipts financing.
Los Angeles Housing Department
Application Submittal
Applications must be delivered to one of the following addresses:
Prior to application deadline: On application deadlineFrom 9:00 A.M. to 4:00 P.M.
Los Angeles Housing Department Los Angeles Housing DepartmentAffordable Housing Trust Fund 1200 West 7th StreetAttention: Sergio Tejadilla, Manager Los Angeles, CA 90017 1200 West 7th Street, Rm. 805 Los Angeles, CA 90017Telephone (213) 808-8596
APPLICATION DEADLINE TO BE ANNOUNCED
Los Angeles Housing Department
For More InformationLos Angeles Housing Department: www.LACITY.ORG\LAHD1200 West Seventh Street, 9th Floor, Los Angeles, CA 90017
Question and Answer: [email protected]
Douglas Guthrie, General ManagerLos Angeles Housing Department(213) [email protected]
• Tim Elliott, Acting Director Sergio Tejadilla, Acting ManagerMajor Projects Affordable Housing Trust Fund(213) 808-8901 (213) [email protected] [email protected]