San Francisco

Local Operating Subsidy Program

(LOSP)

Policies and Procedures Manual

2018

2

LOSP Policies and Procedures Manual

Table of Contents

SECTION 1 - PROGRAM SUMMARY 4

SECTION 2 - APPLICATION FOR LOSP SUBSIDY 6

2.1 Background 6

2.2 Sizing the LOSP Request 6

2.3 LOSP Program Transition Reserve 8

2.4 Steps to Secure and Maintain a LOSP Grant Agreement 9

A. Request for Approval 9

B. Loan Committee Review and Approval of Grant Agreement 9

C. Board of Supervisors Approval and Execution of Grant Agreement 10

D. Ongoing Grant Agreement Budget Appropriations 10

E. Annual Reporting 11

F. Annual LOSP Grant Agreement Disbursements 11

G. LOSP Deficits / Request for Additional Subsidy Request 12

2.5 LOSP Contracting after Initial Contract Term Expires 13

SECTION 3 - TARGET POPULATIONS, REFERRALS, SUPPORT

SERVICES AND ELIGIBILTY 14

3.1 Target Populations 14

3.2 HSH Referral Process 15

3.3 Homeless Services Plan and Contract Approval 15

3.4 Services Plan and Steps for Services Contract Funding 17

A. Preliminary Services Plan and Budget at application for capital financing 17

B. Comprehensive Services Plan and Budget prior to Gap Request 17

C. Final Services Plan 17

D. Services Contract 17

3.5 Marketing Plan and Tenant Selection Criteria 17

3.6 Tenant Eligibility Requirements / Definition of Homelessness 18

SECTION 4 - LOSP IN PROGRAM OPERATIONS 20

4.1 Protecting the Privacy of Clients 20

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4.2 Lease Addendums 21

4.3 Tenant Income Recertification 21

A. Recertification Notice 21

B. Housing Provider Outreach With Recertification Notice 22

C. Follow Up If Tenant Does Not Respond 22

D. Interim Recertification When Needed 22

4.4 Security Deposits 23

4.5 Maximum Incomes and Calculation of Tenant Rents 23

4.6 Overview of Housing Transfers 25

A. Types of Transfers 26

B. Transfer Request Process 27

C. Transfer Request Review Procedure 28

D. Approved Transfer Requests and Vacancies 28

4.7 LOSP Subsidy Termination 29

A. Overview of LOSP Subsidy Termination 30

B. Determining Termination of Subsidy 30

C. Issuance of the Notice of Termination of Subsidy 31

D. Hearing Process 31

E. Following the Hearing 32

4.8 MOHCD Compliance Monitoring 33

4.9 Critical Incident Reporting 33

A. Reporting Requirements for MOHCD 33

B. Reporting Requirement for HSH 34

4.10 “Moving On” Exits from Supportive Housing 34

SECTION 5 RESOURCES AND CONTACTS FOR MORE

INFORMATION 36

ATTACHMENTS 36

Attachment A: Operating Proforma, 20 Year Cashflow, Schedule A1A2 and A

Attachment B: Tier Service Funding Objectives

Attachment C: LOSP Tenant Selection Criteria Requirements

Attachment D: LOSP Lease Addendum: Adult

Attachment E: LOSP Lease Addendum: Family

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1. PROGRAM SUMMARY

As part of the City and County of San Francisco’s effort to address the needs of the homeless

population, the City has prioritized the development of non-profit owned and operated

permanent supportive housing for formerly homeless adults and families. While capital

financing can be leveraged to build supportive housing for this population, stakeholders realize

these units cannot be feasibly operated at the scale needed if they rely solely on insufficient

federal or state operating subsidies.

In June 2004, the City launched its Ten Year Plan to Abolish Chronic Homelessness, a

multifaceted approach that established the Local Operating Subsidy Program (LOSP) in 2006 to

support the creation of permanent supportive housing on a large scale. The operating subsidy

leverages capital financing by integrating homeless units into Low Income Housing Tax Credit

projects by providing funds to eliminate operating deficits. LOSP was created by the Mayor’s

Office of Housing and Community Development (MOHCD) in partnership with the Department

of Public Health (DPH) and the Human Services Agency (HSA).

Since 2004, other plans and reports have influenced City policy including the Transitional Age

Youth Housing Plan (TAY Housing Plan), the Point in Time Count Reports, Local Homeless

Coordinating Board reports, and the 5 Year Consolidated Plan (Con Plan) among others. Most

recently, the Department of Homelessness and Supportive Housing adopted a five year Strategic

Framework with goals to dramatically reduce chronic homelessness and end family

homelessness. That plan, as well as annual updates, can be found at HSH.sfgov.org.

Through 15-year grant agreements with MOHCD, which are subject to annual appropriations by

the Board of Supervisors, LOSP pays the difference between the cost of operating housing for

homeless persons and all other sources of operating revenue for a given project, such as tenant

rental payments and other operating subsidies. The Department of Homelessness and Supportive

Housing (HSH) refers homeless applicants to the housing units from diverse access points

(identified social service agencies across the City serving homeless populations) and is moving

toward a Coordinated Entry system for all populations. HSH also provides ongoing services

funding to the projects through separate contracts.

Supportive housing projects are selected for capital funding by the Citywide Affordable Housing

Loan Committee (Loan Committee), comprised of Directors and/or senior staff of MOHCD,

HSH, and the Office of Community Investment and Infrastructure (OCII), pursuant to a

competitive Notice of Funding Availability (NOFA) or Request for Proposals (RFP) process.

New housing units intended to serve homeless adults or families are eligible to receive LOSP

funds when other operating subsidies (e.g. Continuum of Care, Mental Health Services Act

(MHSA) Housing Program Capitalized Operating Subsidy Reserve (COSR), Section 8/Housing

Choice Voucher (HCV), etc.) are not available or are insufficient to fully cover the projected cost

of serving the formerly homeless. If LOSP funds are needed, a project-specific operating budget

demonstrating annual need over a 15-year period is reviewed by the Loan Committee and a

Grant Agreement recommendation is made to the Mayor. Once recommended for approval, the

15-year Grant Agreement must be approved by the Board of Supervisors. LOSP subsidies are

awarded subject to funding availability. There is no entitlement to the receipt or continued

receipt of a LOSP subsidy.

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In 2006 the first permanent supportive housing NOFA was issued, resulting in several single-

site, 100% permanent supportive housing projects serving both formerly homeless adults and

families under the “Housing First” model.1 In addition to providing funds for the development

of single-site 100% supportive housing projects, the City has established a standard minimum

20% homeless population target for city-financed developments, with specific emphasis on

homeless adults, families with minor children, seniors, transitional age youth (TAY) and people

with severe mental illness, among others. Ten years after the first permanent supportive housing

NOFA was issued, LOSP has grown to support 1,500 supportive housing units, with an

additional 1,000 units in the pipeline. In FY 2017-18, annual LOSP Grant Agreements total over

$14.3 million with additional services funding of $8.1 million at 27 housing developments. By

2020, LOSP is projected to support operations at 60% of the homeless units created since 2004

under the 10 Year Plan, with other units supported through federal or state subsidies or locally

funded master lease programs.

On July 1, 2016, the City’s diverse programs addressing homelessness were brought under the

new Department of Homelessness and Supportive Housing (HSH), which combines key

homeless-serving programs and contracts previously located across several City departments.

The new department consolidates the functions of DPH Direct Access to Housing (DAH) and

HSA Housing & Homeless programs. As San Francisco is developing a Coordinated Entry

System (CES) for all homeless populations to best match households to the appropriate

intervention and ensure those with the highest needs are prioritized, the process for referring

applicants into permanent supportive housing will evolve in tandem. LOSP remains a key

element of the City’s strategy to address homelessness.

HSH continues to prioritize and match homeless adult San Franciscans with medical or

behavioral complexities with an appropriate supportive housing unit based on their level of

vulnerability and chronic homeless status. HSH also continues to provide a wide range of

services and housing to help homeless adults, veterans, families with minor children, seniors and

transitional age youth exit homelessness permanently and reach stability and self-sufficiency.

All of the policies and program rules of LOSP must be consistent with the contractual

relationship between the housing provider and the supportive housing tenant, and must comply

with fair housing law and other affordable housing financing regulations. Housing providers

may integrate LOSP requirements into tenant leases and house rules to ensure that the goals of

LOSP can be achieved by utilizing the same enforcement mechanisms that are available in other

affordable housing tenancies.

Permanent supportive housing at this scale is only possible through a collaborative partnership

between City funding agencies, developers and service partners. This LOSP Policy and

Procedures Manual outlines the roles and responsibilities of each partner and summarizes the

policies and compliance responsibilities that accompany the subsidy.

1 “Housing First” is an approach to quickly connect homeless individuals and families to permanent supportive housing without preconditions and barriers to entry, such as treatment or service participation requirements.

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2. APPLICATION FOR LOSP SUBSIDY

2.1 Background

The availability of a LOSP subsidy for specific homeless populations in a City-funded housing

development is identified in the initial Notice of Funding Availability (NOFA) or Request for

Proposals (RFP) issued by MOHCD or OCII in collaboration with HSH to signal the availability

of City capital funding for the development of new supportive housing units. The capital

funding application submission must include a projected annual operating budget and 20-year

cash flow in the MOHCD application format, and requires a calculation of the anticipated level

of LOSP funding needed to cover the gap in operating costs for the proposed permanent

supportive housing units. The project will be underwritten utilizing the City’s current

Underwriting Guidelines, and will include standard allowances for affordable housing project

reserves and fees. In the event another potential operating subsidy becomes available, MOHCD

will support the application for that subsidy to reduce the burden on the overall LOSP budget.

LOSP is intended to support new permanent supportive housing units and cannot replace another

operating subsidy or get layered on an existing project.

2.2 Sizing the LOSP Request

Operating costs that can be included in the LOSP budget include the following: (a) all charges

incurred in the operation of the project for utilities, real estate taxes and assessments and

premiums for insurance required under City loan documents or other senior loan documents;

(b) salaries, wages and any other compensation due and payable to the employees or agents

employed in connection with the project, including all related withholding taxes, insurance

premiums, Social Security payments and other payroll taxes or payments; (c) required

amortizing debt service from public sources such as HCD; (d) the asset management fee,

partnership management fee and investor services fee described in the Annual Operating

Budget or otherwise approved by MOHCD in writing; (e) all other expenses actually incurred

to cover the operation of the project to the standards required including maintenance and

repairs, and property management fees; (f) required deposits to the Replacement Reserve

Account (as defined in the MOHCD Loan Agreement), Operating Reserve Account, and any

other reserve account (excluding the Subsidy Reserve Account); and (g) any extraordinary

expenses arising from the ownership or operation of the project approved in advance and in

writing by MOHCD. Operating costs shall not include payment of deferred developer fee nor

any service provision costs.

When a project is successful in obtaining an award of rental subsidy that includes homelessness

as an eligibility requirement and also requires City referrals (e.g., HUD CoC housing or Project-

Based Vouchers in collaboration with the San Francisco Housing Authority), for purposes of

determining the LOSP subsidy, the revenue from the rental subsidy(ies) will be included with

revenue from the LOSP subsidy to offset projected operating costs for all units that are required

to serve tenants that satisfy the homelessness eligibility requirement.

For projects where less than 100% of the units are LOSP units or units funded by another

operating subsidy that includes homelessness as an eligibility requirement, the LOSP funding is

intended to cover only the portion of the shortfall that is associated with the homeless-serving

units. The budget template allows the operating budget data for LOSP and non-LOSP units to be

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seen in separate columns. For most budget line items, LOSP units are assigned a prorated share

of the total project operating cost. There are some line items where alternative portions may be

proposed subject to MOHCD staff approval.

Assumed tenant rents should be estimated with feedback from HSH and MOHCD based on the

target population’s estimated income and comparable projects.

LOSP units may not carry debt except for minimal mandatory annual interest payments for

below market rate State financing covered by the Universal Multifamily Regulations (such as

MHP, AHSC, and No Place Like Home (NPLH)). Any mortgage on the project, whether from

the City or a commercial lender, must be carried by the other/non-LOSP units.

The following underwriting guidelines apply to all housing funded by MOHCD including LOSP

(for complete list, see the MOHCD website at

http://sfmohcd.org/sites/default/files/Documents/CURRENT%20Underwriting%20Guidelines%

202016.pdf)

Capital:

Supportive housing unit furnishings are calculated at $2,500 per unit for SROs or studios

and $1,500 per bedroom for other units as well as $650 permitted per homeless unit for

start-up soft goods such as kitchen equipment. Common area furnishings are permitted

for new construction up to $2,000 per unit.

Capitalized rent or transition reserve for LOSP units is not permitted due to the LOSP

Program Transition Reserve (see Section 2.3 on page 8).

Operating:

Five (5%) vacancy allowance is calculated off tenant rent given there is a direct applicant

referral source (which will become the Coordinated Entry System) for vacant units and

LOSP subsidy is funded for vacant units.

For commercial space revenue, please refer to the current MOHCD Commercial Space

Underwriting Guidelines.

Estimated project income is based on tenant gross rent contributions at 30% of household

income, or 50% of household income if full, comprehensive on site medical / clinical

services are provided at no additional cost to tenants, such as that found at many HSH

DAH units. The tenant gross rent payment standard for a particular project will be

specified by staff from HSH, MOHCD and OCII.

For projects that have been selected via NOFA or RFP, that document will identify initial

underwriting assumptions for tenant rents, which typically have been $250-$300 per

LOSP unit. This assumed tenant rent level is an initial assumption which will be updated

with feedback from HSH, MOHCD and OCII prior to the LOSP request based on referral

population.

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The operating budget can fund replacement furniture, start-up soft goods and appliances

upon turnover as needed for LOSP and other permanent supportive housing units.

Supportive services for LOSP units are an integral part of the permanent supportive housing

model, and the provision of which are a threshold requirement of the LOSP Grant Agreement.

Supportive services for LOSP units are funded through a separate services contract with HSH,

and, therefore supportive services for the homeless units should not be included in the operating

budget. In a mixed population building that includes non-supportive housing units, a 1 FTE

resident services staff position may be included in the operating budget to support the non-LOSP

tenants if financially feasible and supported by cashflow from the non-LOSP units.

2.3 LOSP Program Transition Reserve

Certain State and private sources of capital financing for housing for homeless persons routinely

require an additional operating reserve account to prepare for the possibility that on-going

operating subsidies are discontinued. This “transition reserve” provides time (typically up to two

years) for tenants to be relocated to another supportive housing setting and for a gradual

reduction in the number of such households being served at that location as the building moves

toward serving residents who can pay sufficient rent to operate the building.

Under LOSP, MOHCD has established, holds and annually funds a LOSP Program Transition

Reserve as a backup payment source in the event LOSP Grant Agreement funds are not

appropriated in any given year. Every year the amount of the LOSP Program Transition Reserve

is sized at 10% of the total annual LOSP Contract encumbrance at MOHCD to cover 5% of the

units over a two-year transition period. If sufficient funds are not appropriated by the Board of

Supervisors in a given year, the City would use the Program Transition Reserve to disburse

subsidy payments and request a transition plan from the sponsor which may include relocation of

permanent supportive housing tenants to other supportive housing projects over the transition

period. This plan would allow for rent increases at the project to enable the sum of rental

revenue plus amounts received from the Program Transition Reserve to equal operating costs

during the transition period, and would allow the sponsor to rent to tenants other than LOSP

eligible households. Priority for access to the Program Transition Reserve will be given to

projects with capital from the State of California Department of Housing and Community

Development programs that are governed by the Uniform Multifamily Regulation (UMR).

Developers of projects that have received capital from the California Department of Housing and

Community Development (HCD) that are monitored by the UMRs (including Multifamily

Housing Program (MHP), Transit Oriented Development (TOD), Affordable Housing

Sustainability Community (AHSC), Veterans Housing and Homelessness Prevention Program

(VHHP), and No Place Like Home (NPLH)) should carefully check UMR requirements

regarding a transition reserve and subsidy renewals.2

2 Note that for some deals which closed their permanent financing with HCD in 2016, HCD required that the

projects must obtain a new LOSP contract approval two years prior to contract expiration or HCD would require

that the sponsor stop renting to new LOSP eligible tenants and send notification letters one year prior to contract

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2.4 Steps to Secure and Maintain a LOSP Grant Agreement

A. Request for Approval: Once a project has been recommended for capital

funding through a NOFA or RFP process, the developer must make a LOSP

request to the Loan Committee in order to move forward its request for LOSP

funding. A LOSP Grant Agreement Evaluation is prepared by MOHCD or

OCII staff. The proposed Annual Operating Budget must be submitted using

the MOHCD proforma template (see Attachment A and link here). Detailed

instructions are provided in the workbook. The LOSP serves as a “gap-

filling” subsidy: sponsors provide estimates of projected revenue and

projected operating costs and LOSP funding is made available to fill the

projected annual operating budget shortfalls.

MOHCD and the Mayor’s Office of Public Policy and Finance prepare long-

term LOSP budget projections based on permanent supportive housing units

in the citywide affordable housing pipeline. Based on these budget

projections, MOHCD can provide a “LOSP budget commitment letter” to

assist the developer in their financing applications for other funding such as

tax credits, state financing and AHP. In the event another project-based

operating or rental subsidy becomes available, such as federal Continuum of

Care (CoC) Shelter + Care subsidies, the developer is expected to work with

the City to secure the alternate subsidy. In some cases, with a LOSP

commitment as a backup, the developer is able to secure state and federal

financing as well as a tax credit award at an earlier stage of the project before

an award of another subsidy.

B. Loan Committee Review and Approval of Grant Agreement: In the fall prior

to each upcoming City fiscal year (July 1 – June 30) in which the project

will receive its Temporary Certificate of Occupancy (TCO), the assigned

MOHCD or OCII Project Manager will underwrite the LOSP Grant

Agreement request and present it to Loan Committee through a LOSP Grant

Agreement Evaluation. The LOSP Grant Agreement Evaluation will closely

analyze the proposed operating budget and 20-year cashflow, compare the

budget to similar projects, evaluate property management staffing, operating

expenses, and underwrite the projected initial 15 year LOSP Grant Agreement

period. The City relies on sponsors to submit projections using operating cost

data from comparable supportive housing projects and expects prudent

management standards and practices appropriate to the project’s supportive

housing model. The size of the estimated subsidy will be based on

conservative assumptions with respect to income and expense trending over

time and will include standard allowances for appropriate reserves and fees,

such as asset and partnership management fees.

expiration. On State financed deals with this requirement, MOHCD staff will endeavor to secure a new LOSP

Contract Commitment two years prior to contract expiration to avoid disruption.

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C. Board of Supervisors Approval and Execution of Grant Agreement: Once

Loan Committee has approved the LOSP Grant Agreement request, the

Project Manager will draft a resolution and 15-year Grant Agreement to be

presented to the Board of Supervisors no later than May prior to the upcoming

City fiscal year that the project will lease up. The Grant Agreement request

will be evaluated by the Budget & Legislative Analyst and presented to the

Budget & Finance Committee. Upon approval, the Grant Agreement will be

finalized and must be executed prior to project lease up.

SAMPLE SCHEDULE OF LOSP GRANT AGREEMENT APPROVAL PROCESS

MOCHD / OCII Staff Underwrite LOSP Grant

Agreement

Fall period preceding the

upcoming City Fiscal Year

(July 1 – June 30) in which

the project comes on line

Loan Committee Approval December preceding the

upcoming City Fiscal Year

(July 1 – June 30) in which

the project will receive its

TCO

MOHCD / OCII Staff draft Board Resolution and draft

LOSP Grant Agreement

March – April

Resolution for 15 Year Grant Agreement is introduced

to Board of Supervisors

April

Proposed Grant Agreement is evaluated by the Budget

& Legislative Analyst

May

Resolution is reviewed by the Budget & Finance

Committee

May

Resolution is approved by the Board of Supervisors June

Final Grant Agreement is executed prior to TCO and

lease up

July 1 up to date of TCO

The standard LOSP Grant Agreement includes references to the City’s capital

financing, outlines service provision requirements which are funded

separately by HSH, identifies the household’s gross rent payment standard,

specifies the underlying regulated contract rents for the LOSP units which

may not be exceeded by the gross rent payment standard, provides the

approved operating budget, 15 year cashflow and the projected annual subsidy

payment schedule.

D. Ongoing Grant Agreement Budget Appropriations: The 15-year Grant

Agreement is subject to annual budget appropriations by the Board of

Supervisors. MOHCD's obligation to make subsidy payments is expressly

conditioned on the (a) appropriation of sufficient funds to HSH for subsidy

payments and transfer of such funds to MOHCD, which is subject to HSH’s

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annual operating budget, or (b) appropriation of sufficient funds for subsidy

payments to MOHCD's annual operating budget. If the annual funds

appropriation for the program subsidy payments in a fiscal year are

insufficient to fund the total program, MOHCD shall have the right to reduce

the amount of subsidy payments. Projects that are financed by HCD

Multifamily Housing Program Supportive Housing (MHP Supportive) will be

prioritized for LOSP funding. If MOHCD determines that subsidy payments

for any given fiscal year must be reduced due to a shortfall in appropriated

program funds (a Non-Appropriation Event defined in the LOSP Grant

Agreement), MOHCD shall notify grantees that a Non-Appropriation Event

has occurred and will work with the Grantee to create a transition plan for the

project. HSH and MOHCD's annual operating budgets are each subject to the

discretion of the City's Mayor and Board of Supervisors. It should be noted,

however, that there has never been a reduction to the LOSP portfolio budget

even during times of recession, underscoring how highly this investment in

permanent supportive housing is valued.

E. Annual Reporting: Project sponsors must submit the Annual Monitoring

Report (“AMR”) as required by the Loan Agreement and the LOSP Grant.

The AMR is used to calculate whether the LOSP portion of the operating

budget generated any LOSP Surplus during the business year reported in the

AMR. As required under the LOSP Grant Agreements, any annual LOSP

surplus must be deposited in the LOSP Subsidy Reserve Account that is

required for every LOSP project. MOHCD shall reduce the subsequent LOSP

disbursement by the amount of LOSP Surplus that has been calculated by the

AMR.

F. Annual LOSP Grant Agreement Disbursements: Disbursements of LOSP

payments are made according to the Project Annual Subsidy Payments Exhibit

attached to the LOSP Grant Agreement (Form A1A2 or Form A). For all

projects, if for any reason the AMR from the most-recent business year has

not been reviewed prior to a LOSP disbursement, any surplus determined to

have been generated from that business year shall be used to reduce the

following LOSP disbursement. Under such circumstances, the AMRs from

more than one reporting period may be used to calculate the amount of surplus

that will be used to reduce the subsequent LOSP disbursement.

There are three schedules for AMR submission and LOSP disbursement that

may apply to a LOSP-funded projects:

1) “Schedule A Only” Projects: in 2017, MOHCD revised the LOSP

disbursement system. All new LOSP projects will use this revised

disbursement system. MOHCD will also work to transition existing LOSP

Grant Agreements to this system when the LOSP Grant Agreement s are

renewed. A sample annual schedule for these Grant Agreement s is shown

below:

a. AMR reporting period: 1/1/2017 - 12/31/17

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b. AMR due date: 5/31/18

c. Target for next LOSP Disbursement Date: Start Dec 2017,

complete by January 31, 2018.

d. Period covered by the next LOSP Disbursement: 1/1/18 – 12/31/18

2) “Schedule A1-A2” Projects – Calendar Year: A sample annual schedule

for these Grant Agreement s is shown below:

a. AMR reporting period: 1/1/2017 - 12/31/17

b. AMR due date: 5/31/18

c. Target for next LOSP Disbursement Date: Start July 2017,

complete by September 30, 2017.

d. Period covered by the next LOSP Disbursement: 7/1/17 – 6/30/18

Important Note: LOSP disbursements for projects that use a calendar

business year consist of LOSP subsidy revenue applicable to two business

years, restricted for use during the time periods noted on the forms

accompanying each LOSP disbursement. These restrictions must be

incorporated when reporting LOSP revenue on the project's audited

financial statement, the AMR, and in any other relevant project reporting

about the project.

3) “Schedule A1-A2” Projects – Fiscal Year (i.e., projects that use something

other than 1/1 through 12/31 for the business year): A sample annual

schedule for these Grant Agreement s is shown below:

a. AMR reporting period: 7/1/2015 - 6/30/16

b. AMR due date: 11/31/16

c. Target for next LOSP Disbursement Date: Start July 2017,

complete by September 30, 2017.

d. Period covered by the next LOSP Disbursement: 7/1/17 – 6/30/18

G. LOSP Deficits / Request for Additional Subsidy Process: If the AMR shows

the LOSP portion of a project operating budget has generated a LOSP Deficit,

the subsequent disbursement shall be made according to the Project Annual

Subsidy Payments Exhibit attached to the LOSP grant agreement unless a

budget increase request is made.

To obtain approval of a requested LOSP budget increase, project sponsors

must submit revised estimates of the project’s budget using the current LOSP

budget templates, as directed by MOHCD staff. Approval of a LOSP budget

increase request shall be made at the discretion of MOHCD with input from

program managers at HSH. Loan Committee approval may be required,

depending on the amount of increase requested, and the explanations of the

causes of the increased need for LOSP operating subsidy funding. A formal

amendment or extension to the LOSP Grant Agreement may also be required,

particularly if the project is projected to deplete the funding available under

the Grant Agreement before the end of the Grant Agreement. The criteria

utilized to evaluate a request for more LOSP funds include: evaluation of

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why operating costs exceed projections; evaluation of staffing pattern

especially if it has increased; evaluation of unanticipated cost spikes (for

example, utilities or insurance premium); opportunities for cost savings; cost

comparison to other similar project.

2.5 LOSP Contracting after Initial Contract Term Expires

LOSP Grant Agreements prohibit the disbursement of LOSP subsidy payments in excess of the

total approved LOSP Grant Amount. LOSP housing providers must initiate a request for

renewed Grant Agreement at least 12 months prior to the end of a LOSP Grant Agreement, and

in some cases where there are HCD capital funds governed by the UMR, a full two years before

the Grant Agreement end date. Housing providers are urged to review their HCD Regulatory

Agreement for the specific terms of their project requirement with respect to renewal. New

LOSP Grant Agreements shall be created using the same process that governs the creation of

initial LOSP grants.

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3. TARGET POPULATIONS, TENANT REFERRALS, SUPPORT SERVICES AND

ELIGIBLITY

3.1 Target Populations

LOSP subsidies are provided to permanent supportive housing developments for specific San

Francisco homeless populations that have a tailored service program for that population. Unit

size, social service delivery space and amenities are designed and programmed accordingly.

Target populations include homeless adults, families with minor children, seniors, TAY and

people with severe mental illness, among others. The specific tenant selection criteria for these

units is also regulated by agreements with capital financing sources, including MOHCD, OCII,

HUD, CA TCAC (low income housing tax credits), HCD (UMR regulated programs), and the

Federal Home Loan Bank (FHLB) Affordable Housing Program. All populations must be

experiencing homelessness in San Francisco and referred and prioritized through the HSH

Coordinated Entry System (CES).

Adults – Adults, 18 years old or older, who are homeless at the time of referral and placement

and who meet HSH established eligibility requirements. Specific eligibility criteria include

meeting the HSH definition of homelessness (unless funding sources require a different

definition), age (see Transition Age Youth and Seniors below), and/or disability (certification of

a specific type of disability may be required). Homeless Adult Couples (without custody of

minor children) who meet the HSH established eligibility requirements also fall into this

category. With the support of community based services, applicants must be able to live

independently without more intensive services such as those provided in assisted living facilities

or skilled nursing.

HSH also targets homeless adults with complex medical conditions, mental health diagnoses,

and/or serious alcohol and/or substance abuse. HSH provides permanent supportive housing with

clinical services on-site for homeless adults who might also frequently utilize multiple care

settings without stabilizing. HSH strives to help tenants stabilize, improve their health outcomes

and independence in the face of their medical and/or behavioral health conditions.

Families with Minor Children - Includes families with minor children who are homeless or at

risk of homelessness, with a focus on referrals from shelters in San Francisco. The referred

applicant must have at least 50% custody of minor children. A “family” is defined as a natural,

adoptive and /or foster family, which may include a “significant other” or a “domestic partner,”

with children in the household below the age of 18 at lease-up. ”Family” may also include

pregnant women with or without a partner, who are five months or more pregnant.

Transition Age Youth (TAY) - Includes young people age 18-24 who are homeless or at risk of

homelessness. This population may include parenting TAY.

Seniors – Includes adults 62 years of age or older, who would be homeless without this

housing. With the support of community based resources, they must be able to live

independently without more intensive services such as those provided in assisted living facilities

or skilled nursing. This population may include senior homeless adult couples (without custody

of minor children).

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Veterans – Eligible veterans that meet the criteria for VASH are served through that subsidy

program, which is administered by the Veterans’ Administration. Homeless individuals and

families who have served in the Armed Forces and do not qualify for VASH assistance may be

served by LOSP where they meet the eligibility requirements for other homeless populations.

HIV+ Individuals –HIV+ individuals are served in LOSP units where applicants meet the

eligibility for other homeless population described above, such as Adults, Families, TAY,

Seniors, or Single Adults through DAH based on their level of medical acuity. In addition, the

+Housing Program through the Community Development division of MOHCD offers limited

additional housing resources for eligible HIV+ individuals.

Homeless populations with severe mental illness – In 2018, California intends to launch the

No Place Like Home (NPLH) program (funded from bond proceeds to be repaid with Mental

Health Services Act (MHSA) revenue) to create permanent supportive housing for persons who

are living with a severe mental illness (SMI) and are in need of mental health and/or substance

use services and are experiencing homelessness, chronic homelessness or are at risk of chronic

homelessness.

3.2 HSH Referral Process

HSH partners with community-based organizations and service agencies located throughout the

City that serve as Access Points (primary referral sources) for services and housing for people

experiencing homelessness in San Francisco. These Access Points are specialized by target

population. Access Points will assess and prioritize people experiencing homelessness, and will

refer prioritized households based on vulnerability, length of homelessness, and specific

eligibility for the housing available.

For families with minor children and TAY, HSH partners with Access Points, which are

contracted organizations who accept referrals from emergency shelters, transitional housing

facilities, and other stand-alone agencies and service providers who serve these populations.

Families and TAY must be referred by one of the identified Access Point agencies in order to

submit an application; no one can self-refer.

Coordinated Entry and ONE System San Francisco is implementing ONE (Online Navigation and Entry), a real-time data entry system for

tracking vacancies in, referrals to, placements in, and exits from permanent supportive

housing. When permanent supportive housing units are available for a referral and placement, CES

will be used to identify a candidate for screening through a standardized assessment in the ONE

system. LOSP supportive housing will receive clients with the highest levels of need. LOSP building

property management and services staff are expected to enter data on LOSP tenant households in real

time as required by HSH, and participate in training for use of the ONE system.

3.3 Homeless Services Plan and Services Contract Approval

High quality supportive services are a critical element of successful permanent supportive

housing and are required by the LOSP Grant Agreement. Services are funded annually and

monitored by the City under separate contract with HSH. Service providers assist supportive

housing residents who need ongoing services to maintain housing stability. Often the service

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provider is part of the developer team that is selected as part of the original capital funding

selection.

Contracts for services are typically for an initial three-year term with an option to extend for two

more years. Subsequently, service providers at each site are selected through a Request for

Proposal (RFP) issued by HSH for three-year terms with an option to extend for two years. Each

contract is assigned a program manager with HSH and this is the contact person for all questions

related to the service provision and contracting.

Currently the services funding amount awarded by HSH is based on the “Tier System” for all

projects except legacy DAH projects. The Tier System is HSH’s systematic approach to funding

services based on factors such as who does placement into the building, the level of need of the

target population, and if the program serves homeless families or adults. For example, in family

housing, additional funding will be provided for an “activities coordinator” to work with children

and youth at the site. All LOSP sites are currently in Tier IV or V. The higher the Tier, the more

service dollars are provided and the lower the ratio for case manager to client. At the time

services contracts are developed for LOSP sites, HSH will inform Service Providers of the

current funding amount for Tiers IV and V.

Each Tier is assigned specific outcome objectives (see Attachment B) which are determined by

HSH. The outcome objectives are reported on monthly, quarterly, and annually and reviewed by

the HSH program manager. Below is the FY 2016-17 breakdown for funding per Tier and

client/case manager ratio on a per unit per year basis for informational purposes. Contact HSH

for the current services tier funding levels.

Summary

FY16-17

Per Unit Per Year

Tier I Adult (Step-Up) = 1:75 ratio $ 1,397

Tier III Adult (Non-placement and Masterlease) = 1:35 ratio $ 2,784

Tier IV Adult (non-clinical) = 1:25 ratio $ 3,886

Tier V Adult (with clinical) = 1:25 ratio $ 4,902

Tier I/III Family (Non-placement) = 1:35 ratio $ 3,341

Tier IV Family and TAY (non-clinical) = 1:25 ratio $ 4,567

Tier V Family (with clinical) = 1:25 ratio $ 5,614

Some Adult Housing Programs at HSH are currently not part of the Tier system of services

funding, and each project’s initial annual services funding of on-site support service is based on a

project by project assessment. Most support services teams include a Master of Social Work

(MSW) or Licensed Clinical Social Worker (LCSW)-level supervisor, who supervises a team of

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case managers. Depending on the anticipated needs of the tenant population, HSH may fund

DPH to provide a registered nurse to provide services on-site.

3.4 Steps for Services Plan and Contract Approval

A. A preliminary services plan and budget is submitted as part of the capital NOFA

or RFP funding solicitation and reviewed by the capital funder (MOHCD or

OCII) and service funder (HSH).

B. As predevelopment advances, the services plan and budget must be further

developed with a comprehensive plan and budget to be submitted prior to

approval of the housing gap funding request.

C. A final service plan and budget must be negotiated and approved by HSH as well

as approved by the Board of Supervisors during the City budget process. In some

instances HSH will conduct a separate service provider solicitation and

procurement process.

D. The services contract will be negotiated between HSH, and the service provider at

least three months prior to lease up, and may include start-up funding during the

initial leasing process.

3.5 Marketing Plan and Tenant Selection Criteria

For all City-funded capital projects, at least six months prior to end of construction, the borrower

must submit the Marketing and Tenant Selection Plan to MOHCD or OCII for review and

approval. The goal of the review is to promote uniform property management standards and to

reduce barriers to housing. Review also includes review of associated documents such as the

tenant lease, application, and house rules as well as flyers and letters used to communicate with

applicants.

The City’s goal with LOSP supportive housing (and all affordable housing) is to screen tenants

in to low barrier housing. This goal to provide low barrier supportive housing goes beyond the

obligations to comply with applicable federal, state and local civil rights laws, including fair

housing laws, reasonable accommodation and limited English proficiency (LEP), the applicable

provision of the Violence Against Women Act (VAWA) and the Fair Chance Ordinance.

The City expects that housing providers will use maximum feasible efforts to ensure that those

individuals and families who are referred are accepted for occupancy in a timely fashion. To that

end, the City has adopted LOSP tenant selection screening requirements as part of the LOSP

Grant Agreement for applicants with a criminal record which satisfy the requirements of San

Francisco Police Code Article 49, Sections 4901-4920 or the Fair Chance Ordinance (see

Attachment C). This criteria describes a minimum level of leniency; providers are encouraged

to adopt less restrictive policies and processes whenever appropriate. For example, providers

may opt not to review or consider applicant criminal records at all.

If a problem arises in the application and screening process that may cause unreasonable delay in

screening outcome, the housing provider should immediately notify the referring agency and

HSH to assist with an expeditious resolution.

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The City of San Francisco has approved numerous preferences for the housing application

process, which will be applied on a project specific basis depending on the regulations governing

each project’s financing sources. These preferences include the Certificate of Preference

Program, Displaced Tenant Housing Preference Program, Neighborhood Resident Housing

Preference Program as well as the Live or Work in San Francisco Preference. Except for

Certificate of Preference certificate holders, these preferences do not apply to the LOSP units as

LOSP tenant referrals are provided by HSH and must meet the underlying criteria of

homelessness applicable to the specific project.

As part of the larger effort to increase access to affordable housing, MOHCD has launched the

DAHLIA San Francisco Housing Portal which streamlines the process of searching and applying

for affordable housing in San Francisco. The online housing portal provides a multilingual, one-

stop, online resource to find and apply for affordable housing opportunities that are sponsored by

the City. Through the portal, clients and case managers can learn about upcoming affordable

housing opportunities and search based on specific criteria. Although LOSP units will be leased

outside the standard lottery housing process, it’s anticipated that DAHLIA and/or the MOHCD

website will refer users to HSH for additional information on supportive housing units and

placement.

Twelve months prior to lease-up, periodic (leading to weekly) planning and lease-up meetings

should occur with the developer, property manager, service provider, HSH and MOHCD or

OCII. The purpose of the meetings is to establish lease-up schedule, review marketing plan and

tenant selection criteria, furnishing needs for homeless units, and begin applicant processing and

lease-up. After lease-up, regular operations meetings should be used to review program

operations monthly or quarterly.

3.6 Tenant Eligibility Requirements / Homeless Definition

Tenant eligibility is defined in the project’s approved Tenant Selection Criteria and governed by

financing source restrictions. These restrictions may pertain to age, veteran status, Housing

Opportunities for Persons with HIV/ AIDS (HOWPA) eligibility, mental health status and

disability in addition to homeless criteria. There are multiple definitions of homelessness, and

the project specific criteria will be defined in the original NOFA or RFQ and should meet the

underlying criteria of HSH for the specific target population (such as Adults, Homeless Families

with Minors, Seniors, TAY, etc.).

If there are no more specific homeless criteria that govern a project, such as homeless definitions

set forth by California State HCD or HUD Continuum of Care rental assistance, HSH is utilizing

the HUD Criteria for Defining Homeless Categories 1 and 4 as well as the State No Place Like

Home definition and prioritizing based on chronicity, length of homelessness and vulnerability.

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. .

HSH Homeless Definition for Purpose of Documenting Housing Program Eligibility:

Note: additional criteria may apply in federally or state funded programs

Family: A “family” is defined as a natural, adoptive and/ or foster family, which may include a

“significant other” or a “domestic partner,” with children in the household below the age of

18. “Family” may also include pregnant women with or without a partner, who are five months

or more pregnant.

Adult: Adult is defined as an individual age 18 or over - or an emancipated youth

unaccompanied by adult family members - and living in a household of one or more people

without minor children.

Families and adults must meet the following criteria for HSH program eligibility for housing:

1. Primary nighttime residence is a public or private place not designed for, or ordinarily

used as, a regular sleeping accommodation for human beings, including a car, park,

abandoned building, bus or train station, airport, or camping ground;

2. Living in a supervised publicly or privately operated shelter designated to provide

temporary living arrangements for people experiencing homelessness (including

congregate shelters, transitional housing, and hotels and motels paid for by charitable

organizations or by federal, State, or local government programs for low-income

individuals;

3. Living in transitional housing program for people experiencing homelessness

4. Fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault,

stalking, or other dangerous or life-threatening conditions that relate to violence against

the individual or a family member in the primary nighttime residence or has made the

individual afraid to return to their primary nighttime residence, and

a. Has no other residence, and

b. Lacks the resources or support networks, such as family, friends, and faith-based

or other social networks to obtain other permanent housing;

5. Has been residing in an institutional care facility, including a jail, substance abuse or

mental health treatment facility, hospital, or other similar facility, for fewer than 90 days

and was homeless in shelter, place not meant for habitation or fleeing/attempting to flee

DV before entry.

6. Persons who are at high-risk of long-term or intermittent homelessness: diagnosed with

serious mental illness and/or chronic substance abuse exiting institutionalized settings,

including, but not limited to, jail and mental health facilities, who were homeless prior to

admission

a. Has no other residence, and

b. Lacks the resources or support networks, such as family, friends, and faith-based

or other social networks to obtain other permanent housing

. .

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4. LOSP IN PROGRAM OPERATIONS

Utilization of LOSP subsidy incurs additional responsibilities for the housing provider team3 in

regards to reporting, income recertification and household transfers to ensure efficient operations

and utilization of the subsidy. LOSP Lease Addendums set forth specific requirements that

apply in consideration for the LOSP subsidy, which help to clarify to the tenant how the LOSP

subsidy works in program operations, including the ability to transfer to another LOSP unit

within the LOSP portfolio if needed. It is important to note that LOSP subsidies are site-based

and do not travel with the tenant if they move into non-LOSP housing.

4.1 Protecting the Privacy of Clients

HSH and MOHCD are committed to protecting the privacy of their clients. Housing providers

that receive LOSP subsidies are required to take all necessary steps to comply with any

applicable laws to protect the privacy of clients who are placed in units with LOSP subsidies. For

purposes of this policy, “Confidential Information” means protected health information and any

information that could be used to identify an individual, including their name, address, social

security number, medical information, financial information, date and location of birth, and

names of relatives.

HSH data sharing and privacy expectations will govern the sharing of data about clients living in

LOSP units.

Any Confidential Information that is shared between parties must be transmitted in a manner that

protects individuals from being identified by an external party. If information is being shared via

email, the subject line of the email should never include an individuals’ full or partial name or

other personal identifiers. The body of the email should not include any identifying information

about the client, unless the email is encrypted and can be sent securely to the recipient. HSH

sends confidential emails via a secure site called Zixcorp, and housing providers are expected to

respond to the emails using the site. Any paperwork that must be shared via an attachment to an

email must be sent securely. If sending information securely in an email is not an option, the

housing provider must find an acceptable alternative method, such as fax. Faxes should be sent

3 Housing provider team means the agency or agencies involved at the housing site that participate in referral and placement of potential tenants, property management and supportive services at the permanent supportive housing site.

o The MOHCD LOSP Grant Agreement is with the owner entity for property management functions.

o HSH's Services Grant Agreement with the Service Provider is for supportive services only, but the site must operate so that the tenant will be supported by the appropriate site staff regardless of whether the tenant approaches property management or support services with a transfer issue or request.

o Property management will have a relationship with HSH regarding notification of vacancies, referral, placement and the procedures described here for those units that are filled by HSH referral.

o Support services may be provided by a different agency or department than property management yet it is important that site staff communicate and coordinate in a way that best supports the site applicants and tenants.

HSH relies on the Housing Provider (either a single agency or partnership of agencies) to determine how this protocol is managed so that all of the components are addressed and tenants are supported.

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with a coversheet which clearly states that the paperwork included is solely for the intended

recipient/program, and the coversheet must include instructions to notify the sender immediately

if the recipient is not the intended recipient.

4.2 Lease Addendums

For new LOSP projects or projects requesting a Grant Agreement renewal, a LOSP Lease

Addendum must be provided to all tenants to sign upon lease-up or recertification (see

Attachment D for Adult LOSP Addendum and Attachment E for Family LOSP

Addendum). The Adult and Family Lease Addendums set forth specific requirements that apply

in consideration of the LOSP subsidy. The tenant acknowledges in the Lease Addendum that if

they fail to comply with the household size and other requirements, the tenant may be required to

transfer to another appropriately sized unit or the LOSP subsidy may be terminated in which case

they would be responsible for the full underlying restricted rent.

The Family LOSP Lease Addendum specifies that the family with a minor dependent child(ren)

upon lease up shall maintain at least 50 percent child custody and child residency in the

subsidized unit. When a minor becomes 18 years old, the family is still eligible for the LOSP

subsidy as long as the appropriate household size is maintained in the unit.

4.3 Tenant Income Recertification

The housing provider at LOSP sites must obtain each LOSP tenant household's recertification of

household income on an annual basis since changes in income will affect the amount the tenant

pays for rent. These certifications should be prepared pursuant to low income housing tax credit

guidelines for household income for tax credit projects and / or HUD guidelines as applicable

and should be maintained on file at the LOSP Grant Agreement Grantee's principal office for no

less than five (5) years following the date of such certification. The LOSP Grantee must provide

MOHCD and / or HSH copies upon request.

A. Recertification Notice:

Unless superseded by tax credit or HUD regulations for the property,

recertification Notices from the housing provider to a tenant regarding the need to

recertify household composition and/or income must be in writing, and delivered

personally to the leaseholder(s), or mailed to the tenant if the letter cannot be

delivered personally to the leaseholder(s), and include the following:

1. Date of the request.

2. Due date for the response (no earlier than 30 calendar days from date of

request).

3. Reason for the need to recertify: annual, follow up to reported changes, etc.

4. List of documents, certifications, etc. that are required.

5. Referral to housing provider’s onsite support services for assistance in

understanding and/or responding to the Recertification Notice.

6. Offer to meet with tenant to discuss the Recertification Notice. The tenant’s

meeting with the housing provider may include staff providing support

services.

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7. Statement that failure to recertify may lead to termination of rental subsidy

and make the tenant responsible for the full underlying restricted rent for the

unit. The monthly underlying restricted rent amount for the unit must be

stated.

8. Statement that a copy of the Recertification Notice will be sent concurrently to

the housing provider’s support services.

B. Housing provider outreach with Recertification Notice:

Any notice of the need to recertify must be shared with the housing provider’s

support services. Support services staff must conduct and document outreach to

the tenant as soon as possible to:

1. Confirm receipt of Recertification Notice.

2. Offer to discuss reasons for the need to recertify.

3. Offer assistance in communication with property management and/or the

housing provider’s compliance office with the Recertification Notice.

4. Explain that if eligibility of the tenant has changed, cooperation with property

management allows for consideration of a transfer to an eligible unit.

C. Follow up if tenant does not respond or refuses to recertify by the due date

identified in the Recertification Notice:

1. The housing provider must provide a written follow up Recertification Notice

stating that the deadline has passed and requesting an immediate response,

with a deadline for a total of 10 working days following the original due date.

2. This follow up notice must be shared with the housing provider’s support

services staff.

3. Support services staff must conduct and document additional outreach

similar to what is stated above.

4. Housing provider support services staff must contact HSH.

D. Interim recertification due to change in household composition or significant

change in household income:

Household income may vacillate between annual household recertifications

causing a financial burden on the household or resulting in the household being

able to pay more in rent. Furthermore, changes in the family size may mean that

income changes or the current unit is no longer appropriate in size. Therefore, in

LOSP subsidized units, interim recertifications are required in the following

situations:

1. When a change in household composition is reported

2. When a significant change in household income is reported

Increase in a family’s cumulative income of $200 or more / month

Decrease in income of $200 or more / month unless the decrease

was caused by a deliberate action of the tenant to avoid paying rent

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or the owner has confirmation that the decrease will last less than

one month

3. Upon receiving a tenant request for an interim recertification, owners

must process a recertification of family income and composition within a

reasonable time, which is only the amount of time needed to verify the

information provided by the tenant. Generally, this should not exceed 4

weeks.

4. When the housing provider becomes aware of factors or situations that

indicate a possible unreported change in household composition or total

income.

Proof of income must be submitted by the household to verify the date of the

income change. The increase or decrease in gross rent will take into effect the 1st

of the month following the date of the income change. If the income change falls

on the 1st of the month the gross rent will be adjusted as of that date.

4.4 Security Deposits

Security deposits may be required of tenants in accordance with applicable federal regulations,

state law and the LOSP Agreement. Any security deposits collected must be segregated from all

other funds of the project in an account held in trust for the benefit of the tenants and other

tenants of the project and disbursed in accordance with California law. The balance in such

security deposit account must at all times equal or exceed the aggregate of all security deposits

collected plus accrued interest thereon, less any security deposits or interest thereon returned to

tenants or any other tenants of the project.

4.5 Maximum Incomes and Calculation of Tenant Rents

Maximum permitted income may vary from one LOSP project to another and between units

within a project depending on financing source restrictions. There are no universal maximum

income restrictions on LOSP units per se.

Tenant gross rents are calculated as a portion of household income, typically 30%, not to exceed

the maximum rent allowed under the most restrictive financing source (underlying restricted

rent). For many HSH DAH supportive housing sites, the gross rent payment standard is 50% of

a tenant’s gross monthly income if all financing sources allow this rent payment standard as

there is a high level of health services offered on site. These gross rent payment requirements

must be clearly identified in the Marketing and Tenant Selection Plan.

It is important for sponsors to factor any applicable Utility Allowance when calculating the gross

tenant rent; for example, for a tenant with $12,000 in annual income who is responsible for

paying for utilities such that the applicable monthly Utility Allowance is $45, the monthly

tenant-paid-rent is calculated as follows:

$12,000 x 30% = $3600

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$3600/12 = $300 = max Gross Rent

$300-$45 = $255 tenant paid rent (i.e., after deducting tenant utility payment)

Minimum rents may be charged for tenants with zero income if approved by MOHCD and HSH

and included in the property’s Marketing and Tenant Selection Plan which is subject to MOHCD

approval. If there are minimum rents, Sponsors are encouraged to provide a hardship waiver for

tenants who have no resources to pay it. If the sponsor would like to implement minimum rents

after the initial lease up, it must be requested of MOHCD Asset Management staff who will

consult with HSH. Approval would require an update to the Marketing and Tenant Selection

Plan.

With the written approval of HSH, the gross rent charged to a tenant may be increased as a result

of a determination by HSH that the tenant is no longer eligible to receive LOSP subsidy, so long

as the gross rent charged does not exceed the underlying restricted rent.

4.6 Overview of Housing Transfers

Tenant housing transfers within the LOSP portfolio may be requested or required for the

following types of transfers: Life Safety, Reasonable Accommodation and Changes in

Household Size, in that order of priority. All transfer requests are dependent on unit availability.

A tenant whose transfer request fits into the guidelines for one of these three categories of transfers will be considered for placement on the Life Safety, Reasonable Accommodation or Change in Household Size Transfer Lists. All transfer requests must go through the housing provider, who reviews the request for completeness and makes recommendation on whether or not they support the transfer request.

LOSP Adult/TAY units: When a transfer of a tenant can be accommodated within the same building where the tenant resides, the Housing Provider shall follow its internal process for the transfer of units. In cases where the tenant requires a transfer to another building within the HSH portfolio, the verified request must be provided to HSH with the Transfer Request Form, via secure method, and the transfer process outlined in section

4.6 B below shall be followed.

LOSP Family units: Due to the number of limited vacancies within the family permanent supportive housing portfolio, all verified requests for a transfer of unit shall be provided to HSH by the Housing Provider with the Transfer Request Form via a secure method. HSH maintains a list for each of the types of transfers. (Please see section 4.6 B, Transfer Process below.) This is necessary as the next available unit may be with a different housing provider and/or not in the same building as the current unit. HSH must be notified even if the transfer can be handled between units/sites managed by the current housing provider as other LOSP tenants may have priority on the transfer lists. When a LOSP unit becomes available, the next tenant on the list whose needs are met by the unit,

will have the opportunity to screen for the unit.

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A. Types of Transfers

1. Life Safety - Transfers of this type must meet one of the following guidelines:

a. Immediate health need of tenant as verified in writing by medical provider.

(This need may also fit into the reasonable accommodation category but overlaps with the life safety category when the situation prevents access to/use of the current housing unit.)

b. Immediate safety need of tenant as verified in writing by off-site medical or social service provider, and documented by building incident reports, court

orders or police reports. Information should include incidents that have occurred on-site versus off-site.

2. Reasonable Accommodation - Reasonable Accommodation or Modification refers to the process when policies, operations, procedures and/or aspects of the housing unit/site are modified or altered to provide a person with disabilities the same opportunity to benefit from a service, program or activity. Fundamental modifications are not required under the Americans with Disabilities Act. In order to be considered for a transfer due to Reasonable Accommodation, transfers requests must meet the following guidelines:

a. Verification from a licensed medical professional must be provided to HSH if the disability related to the need is not obvious. If the disability related to the need is obvious, verification from a licensed medical professional is not required.

The Transfer Request form should state what needs to change or be added to what is available in the current unit and how it will assist the tenant to maintain housing. Requests that only state a specific alternate unit or site will require further follow up so the current housing provider and HSH can understand specifics of the request and consider every possible accommodation.

NOTE: If the accommodation is required immediately and no accommodation is available in the current building, this request should be considered as a Life Safety Request.

3. Change in Household Size - Occupancy criteria is established in the Marketing and

Tenant Selection Plan and approved by MOHCD or OCII. It is important that

households are in appropriately sized units to best meet the needs of other homeless

households in need of a housing unit. Tenants must report changes in household size

to the housing provider within the timeline indicated in the tenant lease. A tenant

that has changed household size and is no longer within the minimum to maximum

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occupancy range for the current unit will be considered for the change in household

size transfer list.

a. Tenants who are below the minimum occupancy requirements for larger units

must transfer to a smaller unit in order to maintain the housing subsidy. Tenants

who exceed the maximum occupancy for their current unit may request a transfer

to a larger unit.

b. Certification of the current household size will be required to process the transfer.

This may include documentation of custody of minors, a letter from a social service provider of imminent reunification or proof of pregnancy. The specific situation will determine what documentation will be required. All tenants must validate household size as part of annual recertification and when minimum or maximum occupancy issues are in question.

B. Transfer Request Process

The housing provider completes a Transfer Request Form, which includes a statement regarding the tenancy of the tenants requesting/needing the transfer, and documentation supporting the specific type of transfer and that the request can only be met with a transfer to another unit and/or building. The Transfer Request Form and supporting documentation must be submitted to HSH within ten working days of verifying the request. Tenants who are requesting a transfer may become known to the housing provider by:

Tenant request or notification

Recertification shows change in household size or eligibility

Staff awareness

Tenants must be on good standing with their current tenancy in order to request a transfer or to be eligible for a transfer, unless the transfer is being requested for a Reasonable Accommodation. Approved Reasonable Accommodation requests that require a transfer should be accommodated to the extent possible, regardless of tenancy status. Services providers should continue to work

with tenants who are not on good standing but have an approved reasonable accommodation request, on a plan to become in good standing while they wait for their transfer. The definition of good standing is as follows:

i. Rent payments are current. ii. The tenant has no back rent repayment plans or court issued “pay and stay” orders

currently in place. iii. Tenant has not had any written lease violations in the past 6 months. iv. Tenant has not failed a unit inspection in the past 6 months. v. The condition of the room has not prevented regular pest inspection and treatment

in the past 6 months. vi. There are no current or pending legal actions between the tenant and property

management.

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For requests related to life safety or family composition, a Transfer Request Form may be submitted to HSH by the housing provider if the tenant is not in good standing. The housing provider must provide information on the tenant transfer form, regarding why the tenant is not in good standing and what is being done to address the matter. The tenant making the request must write a statement explaining the reason that the tenant is not in good standing and what steps the tenant has taken to address the issue. The tenant’s statement must be verified by the housing provider. Additional supporting documents maybe included with the transfer form. All

information will be considered by the HSH program staff and site staff to determine next steps.

A Release Form should be provided with the Transfer Request Form, which covers communication about the potential transfer and tenancy between the current housing provider, HSH and the other housing providers within HSH's housing portfolio.

NOTE: If the request for transfer is not initiated by the tenant, it may not be possible to obtain a Release Form. It is important to bring the issue to HSH as soon as possible; therefore the Transfer Request Form may be submitted to HSH without a Release Form. The housing provider submitting the request should include a statement about the situation, attempts to engage the tenant, etc. Together, the housing provider and HSH will consider how the process will proceed.

Additional documentation as requested by HSH may be required. The housing provider should assist the tenant in the completion of forms and submission of additional documentation throughout the process.

C. Transfer Request Review Procedure

1. The HSH program staff for the (current) site reviews the Transfer Request Form

and provides a response to the housing provider within five working days of receiving the request.

i. Where documentation is incomplete, the transfer request is discussed between the housing provider and the HSH Program Manager. This will result in identification of next steps for the housing provider to take

regarding communication with the tenant.

ii. If the tenant is complying with the transfer process, the HSH response will include whether the request is complete and if the tenant will be added to one of the transfer lists. If the tenant will not be added to a Transfer list, the HSH program staff will provide the reason and, where possible, what additional information may allow the request to be approved.

iii. If the tenant is not complying with the transfer process, the HSH program

staff will review the information with the housing provider to identify the next steps. If the tenant is not in good standing, this is also reviewed with the housing provider.

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2. If the tenant’s request can only be accommodated by a transfer to another unit and/or building, the HSH program staff adds the tenant to one of the applicable lists: 1) a life safety transfer, 2) a reasonable accommodation transfer, or 3) a change in household size transfer. If the transfer request is approved, HSH will provide notification of placement on the appropriate transfer list to the housing provider, who acts as the main contact for the tenant. The housing provider will inform the tenant of his/her status.

3. If the transfer request is denied, HSH program staff informs the current housing

provider and includes information regarding the decision in writing. The housing

provider shares the transfer request denial with the tenant. At this time, the tenant

may submit additional information for review and/or request an appeal to the

denial with the housing provider and the HSH Program Manager.

D. Approved Transfer Requests and Vacancies

When a vacancy in a LOSP unit becomes available, the housing provider will inform HSH and

HSH will determine if the available request can be utilized for a transfer.

1.The Transfer Lists will be reviewed by HSH Program Managers when each

vacancy becomes available.

2.At the time an appropriate unit is available, the next person on the Transfer Lists,

according to the priorities identified above, will be offered the opportunity to

screen for the unit.

3. When there is an opportunity to screen for a unit that fits the transfer request, HSH

will ask the current housing provider to update the tenancy status. It may be

necessary to request a new Release Form specifically identifying the permission to

communicate between the housing provider, HSH and the potentially new housing

provider.

4. The screening process will be similar as with new tenants and the current housing

provider will act as the liaison between the tenant, HSH and the new housing

provider. Applications and documentation of household size, income and/or

certification of disability may need to be resubmitted or updated as part of the

screening process for the new unit. Some eligibility factors that existed at the

time of placement with the current housing provider, such as status of

homelessness, will be used to qualify for the new provider as a carry forward.

There will be a timeline in which information must be provided and appointments

established to complete the transfer process. These will be communicated in

writing by HSH to the current housing provider to share with the tenant.

5. When an appropriate unit is identified and the tenant is offered the opportunity to

begin the housing process for the available unit. Failure to respond to

communications and requests for updated information, or failure to transfer to the

available unit, may alter the tenant’s status on the transfer lists. It may also result

in actions that can include termination of the rental subsidy.

29

4.7 LOSP Subsidy Termination

A. Overview of LOSP Subsidy Termination

HSH is committed to keeping adults and families housed once placed into

permanent supportive housing. Removal of LOSP subsidy to a household may be

considered only as a last resort, and generally is a result of one of the circumstances

listed below:

1. The tenant, adult or family, fails to provide information for a recertification by the

Housing Provider’s deadline.

2. Changes in household composition that result in the size of the household being

above the maximum or below the minimum occupancy standards for the unit.

3. Changes in household composition that result in the adult household member with

a qualifying disability (in units where this is an eligibility requirement) no longer

residing in the unit, and there is not a certified qualifying disability among any

other adults in the household.

4. For family units, removal of all minors from the household.

5. If, after any of the above situations are identified, the tenant refuses an alternative

unit that is offered that would continue eligibility for LOSP subsidy.

6. For DAH program participants, non-compliance with DAH Program Rules, as

indicated in the DAH Program Application and/or LOSP Adults Lease Addendum

If a circumstance that is not listed above is proposed to lead to a possible termination

of subsidy, the matter and all supporting documentation must be submitted to HSH

and will be reviewed carefully by the Housing Provider and HSH to determine if

subsidy termination is warranted.

HSH program staff assigned to the site/grant must be informed:

1. When a tenant has failed to respond to a recertification after the initial and follow

up efforts noted above.

2. When site staff become aware of factors or situations that indicate a possible

unreported change in household composition

The purpose of the contact and exchange between the housing provider and HSH:

1. Discuss and determine if additional steps need to be taken.

2. Identify methods by which HSH may obtain information and/or request

information that may help clarify the tenant’s situation.

o Determine if that effort requires a release to be signed by the tenant due to

sharing of personal or confidential information.

30

B. Determining Termination of Subsidy

If a tenant does not complete recertification and/or refuses a transfer to an appropriate

LOSP unit that would allow subsidy to continue:

1. The Housing Provider will provide written notice to the tenant for clear next steps

and a final deadline to come into compliance, and provide a date when subsidy will

be removed if the tenant does not come into compliance. The housing provider

(property management) is responsible for sharing this with the tenant and notifying

its support services staff for follow-up outreach.

2. If the tenant does not come into compliance, the housing provider will submit a

Program Rule Violation Report form to the HSH program staff to recommend

LOSP subsidy removal.

3. The housing provider and HSH will discuss and determine next steps, and identify

what support may assist the tenant in finding other housing.

If a transfer might still be possible or recertification could support

continuation in the current unit, HSH will provide the housing

provider with information regarding what is required for that to be

pursued, and the timeline.

If a transfer will continue eligibility, the tenant will be added to

the appropriate Transfer List. The tenant will remain in the

current unit while an appropriate unit is identified according to

Section 4.

If a transfer is not possible, HSH will issue a letter to the housing

provider stating why a transfer to another LOSP unit is not possible,

and why the tenant is no longer eligible for any LOSP unit. The

housing provider is responsible for sharing this with the tenant and

notifying its support services for follow up outreach.

4. If the tenant will not be eligible even if transferred to another unit or is refusing to

recertify or refusing a transfer to remain eligible, HSH program staff will determine

whether a notification of subsidy termination is appropriate by reviewing:

a. The original eligibility criteria when the tenant was first placed in the

current unit.

b. The correspondence provided to the tenant by property management

and/or support services staff at the site including all documentation of all

efforts made.

c. All documented outreach efforts by the housing provider and its various

components (property management, support services, etc.) to attempt to

gain cooperation from the tenant.

d. A list of all recertification documentation that was obtained related to the

current issue.

31

e. A summary of tenancy regarding current status and steps taken to address

any issues.

5. If the HSH program staff determines that a notification of subsidy termination is

appropriate, a review will be presented to the Program Manager’s supervisor at HSH.

The supervisor will:

a. Request that the HSH program staff work with the housing site staff on specific

additional steps to ensure all efforts have been made to get the tenant into

compliance, prior to a Final Notice of Termination of Subsidy being issued.

OR

b. Agree and prepare a Final Notice of Termination of Subsidy (see section 4.7 C).

C. Issuance of the Notice of Termination of Subsidy

The Notice of Termination of Subsidy comes from and is signed by the HSH Program Manager’s

supervisor.

The Notice of Termination of Subsidy includes:

a. Name and address of tenant

b. The reasons for termination of subsidy

c. A summary of all the documentation reviewed by HSH

d. The date of termination of subsidy – usually the last day of a month

e. The process and timeline for requesting a hearing with HSH, to include

opportunity to request a hearing within 10 days’ receipt of the Notice

f. Referral to property management and support services at the site if there are

questions about the reasons for termination prior to a hearing

g. Next steps that would help the tenant address issues at the hearing

h. Full monthly unsubsidized rent amount

i. Date when unsubsidized rent is applicable (i.e. be the tenant’s responsibility.)

j. The housing provider’s property management staff will share the letter with

its support services staff for follow up outreach.

The termination Notice is issued to tenant and copied to housing provider and HSH Program

Manager. If the tenant requests a hearing within 10 working days after the date of the

Termination Notice, the hearing will be scheduled within 5 working days of the tenant’s request.

D. Hearing Process

The hearing is conducted by two individuals from HSH's Housing & Homeless staff who are not

directly involved with the Adult and Family LOSP Programs contract management (Hearing

Committee).

Participants in the hearing should include:

Tenant

32

Tenant advocate or housing provider’s support services staff (i.e., case

manager)

The housing provider’s property management staff and/or representative

of the housing provider

HSH program staff and Supervisor assigned to the property.

Documents made available shall include copies of related correspondence and other materials.

During the hearing, presentations to the hearing committee will be made by the following parties,

in this order:

1. The housing provider will present:

The issues related to eligibility for the tenant’s unit.

The history of communication regarding the issues/reasons for the

termination of subsidy.

Outreach and support efforts that have been offered to the tenant.

2. The tenant will be offered the opportunity to present:

Documentation related to eligibility.

Written or verbal communication with property management staff or

support services staff.

Written and oral objections to the reasons for subsidy termination.

3. The HSH program staff will present additional information as requested by the

Hearing Committee.

E. Following the hearing

1. The HSH staff who conducted the hearing will issue a written decision within

5 working days to the tenant with copies to the housing provider and the HSH

Program Manager. The housing provider must share the decision with its

support services.

2. The written response will include information regarding the reasons for the

final decision and next steps.

If the decision upholds the termination of subsidy, the written decision

will provide the date the subsidy will terminate.

If the decision does not uphold the termination of the subsidy, the

written decision will include:

o Steps the tenant must take to maintain the subsidy.

o The timeframe to complete those steps.

o The statement that the Notice of Termination may be reissued if

the tenant is not responsive or the information provided confirms

the lack of eligibility for the subsidy in the current unit.

3. A decision that does not uphold the termination of the subsidy does not

prevent the process from repeating based on eligibility and the tenant’s

cooperation with the process.

33

4.8 MOHCD Compliance Monitoring

Annual reporting and periodic inspections are the two primary tools that the MOHCD Asset

Management Team uses to monitor projects, assess their performance, and ensure ongoing

compliance. All units with MOHCD financing are required to submit an Annual Monitoring

Report (AMR), a multi-faceted report that covers all aspects of a project’s operations relevant for

MOHCD to assess compliance with requirements under City contract. For purposes of assessing

compliance with the requirements under LOSP grant funding, project sponsors must submit

detailed information about tenant incomes, rents and household sizes and annual financial

activity.

MOHCD Asset Management staff use the tenant information reported to verify compliance with

the following:

Income eligibility requirements

LOSP rent charges

Occupancy and changes in household size

Ensure expenses and fees are within limits approved under the project’s MOHCD or

OCII Agreements

Assess for variances in revenue, expenses or fees compared to the approved operating

budget under the LOSP grant agreement

Determine the amount of LOSP surplus or deficit for the reporting period

The Asset Management team may also conduct periodic inspections of projects financed by

MOHCD and OCII to determine if they are being operated in compliance with the terms of

MOHCD and other applicable City and federal regulations. These entail a physical inspection of

the project, as well as an examination of tenant files and property management records, including

conformance with maximum incomes, maximum rents, and tenant income certifications.

4.9 Critical Incident Reporting

Even the most effective management of affordable housing properties cannot completely prevent

the occurrence of serious, negative events such as accidents, criminal activity or equipment

failure. At their worst, these events can lead to property damage, displacement of tenants, bodily

injury or death. If a serious incident does occur, the property owner should notify all

stakeholders in the project of the occurrence as soon as possible, after emergency procedures

have been followed and the situation has been stabilized.

A. Reporting Requirements for MOHCD

As outlined in the MOHCD Serious Incident Protocol (see http://sfmohcd.org/asset-

management-multifamily-rental-housing), the Mayor’s Office of Housing and Community

Development requests that owners of projects financed by MOHCD notify Asset Management

staff immediately if a serious incident occurs at their properties and meets one or more of the

following parameters:

Involves serious injury or death

34

Is a serious, violent crime that involves a major police action (e.g. shooting)

Causes the building or a significant number of units therein to be off-line

Requires a resident to leave a unit for one month or longer

Damage to the building is significant enough to require the use of reserves

The owner should notify the MOHCD asset manager assigned to the project and provide the

following information:

The date of the incident

A description of the incident

A description of what has been and is being done in response

The name, phone and email of the staff that should be contacted if there are questions

Confirmation that 1) the property insurance is current and 2) the insurance company has

been contacted; a brief summary of their response, if available

Statement of whether or not the organization plans to use the project’s reserves to pay for

corrective action

B. Reporting Requirements for HSH

HSH requires that Providers notify the appropriate HSH Program Manager immediately if a

serious incident occurs at a property that meets one or more of the following parameters below.

Providers must report all incidents using the Critical Incident Report form. For incidents that

involve a death, fire, or egregious violent act, the HSH program manager should be contacted

immediately on the phone first.

Involves medical or emergency personnel (e.g., serious injury, sexual assault, or

death)

Is a violent crime that involves a major police action (e.g., shooting)

For family units – when minor children are removed by Child Protective Services

Causes the building or a significant number of units therein to be off-line

Requires a resident to leave a unit for one month or longer

Damage to the building is significant enough to require the use of reserves

4.10 “Moving On” Exits from Supportive Housing

An important part of the City’s strategy to address homelessness is to create “moving on”

opportunities to enable stable tenants of permanent supportive housing who no longer need or

want on-site services to move to other affordable housing with rental support. The City will then

refer other homeless families and individuals who need the housing combined with services to

the vacated supportive housing units. Based on national best practices, the City and the San

Francisco Housing Authority (SFHA) are collaborating to create the Moving On Initiative

(MOI). The City plans to develop other options for positive exits from LOSP-funded supportive

housing as well as a “transition in place” strategy for mixed-population housing projects in the

future.

San Francisco Housing Authority Preference

35

The San Francisco Housing Authority (SFHA) has established a preference for formerly

homeless households in permanent supportive housing and shelters with a HSH referral (see

latest SFHA Administrative Plan here: http://www.sfha.org/PROPOSED%20ANNUAL%20PLAN/Attachment%20II%20%20%20%20Housing%20Choice%20Voucher%20Administrative%20Plan.pdf (Page 4-21) and contact HSH staff

for details). Households eligible for this preference will receive preference points in the ranking

of their Housing Choice Voucher application for the SFHA Waiting List. Eligible tenants must

be leaseholders of a qualified supportive housing site administered through HSH for 12 or more

consecutive months at the date of application. Qualifying supportive housing sites include those

supported by contracts for LOSP, DAH, SRO Housing First Master Lease Program and Shelter

Plus Care programs. The housing provider, case manager, and HSH staff will support eligible

tenants in the SFHA housing application process. Tenants may speak to staff at their current

housing site for more information. To qualify for referral to the SFHA Waiting List and the

preference points, applicants must meet general criteria as determined by HSH.

36

5. RESOURCES AND CONTACTS FOR MORE INFORMATION

Permanent supportive housing units supported by LOSP and other operating subsidies are critical

to address San Francisco’s housing and homelessness crisis. High quality supportive housing

units, effective social service programs and successful tenant outcomes are only possible through

close collaboration between the City capital and service funding agencies, housing developers

and service providers. If you need more information on specific components of the LOSP

program, please contact:

HSH – for information on target populations, applicant referrals, coordinated entry and

services:

http://dhsh.sfgov.org/

415 252-3232

MOHCD – for information on underwriting, budgeting and LOSP Grant Agreements:

http://sfmohcd.org/

415 701-5500

OCII – for information on LOSP funding in OCII funded projects:

http://sfocii.org/

415 749-2400

To access best practices nationwide in creating permanent supportive housing, access the

Corporation for Supportive Housing (CSH) Supportive Housing Quality Toolkit, containing

tools, templates and project profiles covering Project Design and Administration, Property and

Housing Management, Supportive Services and Community. Go to:

http://www.csh.org/qualitytoolkit

For a detailed description of each component and the corresponding Dimensions of Quality, read

the CSH guidebook available on their website, “CSH Dimensions of Quality Supportive

Housing.”

ATTACHMENTS

Attachment A: Operating Proforma, 20 Year Cashflow, Schedule A1A2 and A

Attachment B: Tier Service Funding Objectives

Attachment C: LOSP Tenant Selection Criteria requirements

Attachment D: LOSP Lease Addendum: Adult

Attachment E: LOSP Lease Addendum: Family

37

Attachment A

Operating Proforma, 20 Year Cashflow, Schedule A1A2 and A

MOHCD Proforma - Year 1 Operating Budget

0% LOSP Units

Non-LOSP

Units Project Name:

Total # Units: 0 0 0 Project Address:

First Year of Operations (provide data assuming that

Year 1 is a full year, i.e. 12 months of operations): Project Sponsor:

0% 0% Correct errors noted in Col N!

INCOME LOSP non-LOSP Total Comments

0 0 Alternative LOSP Split

0 0 0 Residential - Tenant Assistance Payments (Non-LOSP)

0 0

0

0 0 0

0 0 0 Alternative LOSP Split

0 0 0 Supportive Services Income

0 0 0

0 0 0 Projected LOSP Split

0 0 0 Tenant Charges

0 0 0

0 Alternative LOSP Split

0 0 Withdrawal from Capitalized Reserve (deposit to operating account)

Gross Potential Income 0 0 0

0 0 0

0 0 0

0

EFFECTIVE GROSS INCOME 0 0 0

OPERATING EXPENSES

Management Alternative LOSP Split

0 0 Management Fee

0 0 Asset Management Fee

Sub-total Management Expenses 0 0 0

Salaries/Benefits Alternative LOSP Split

0 0 Office Salaries

0 0 Manager's Salary

0 0 Health Insurance and Other Benefits

0 0 Other Salaries/Benefits

0 0 Administrative Rent-Free Unit

Sub-total Salaries/Benefits 0 0 0

Administration

0 0

0 0

0 0 Projected LOSP Split

0 0 Legal Expense - Property

0 0

0 0 Projected LOSP Split

0 0 Bad Debts

0 0

Sub-total Administration Expenses 0 0 0

Utilities Projected LOSP Split

0 0 Electricity

0 0

0 0

0 0

Sub-total Utilities 0 0 0

Taxes and Licenses Alternative LOSP Split

0 0 Real Estate Taxes

0 0 Payroll Taxes

0 0

Sub-total Taxes and Licenses 0 0 0

Insurance

0 0

0 0 Alternative LOSP Split

0 0 Worker's Compensation

0 0

Sub-total Insurance 0 0 0

Maintenance & Repair

0 0 Projected LOSP Split

0 0 Supplies

0 0 Contracts

0 0 Alternative LOSP Split

0 0 Security Payroll/Contract

0 0

0 0

0 0

Sub-total Maintenance & Repair Expenses 0 0 0

Alternative LOSP Split

0 0 Supportive Services

0

0 0 0

Reserves/Ground Lease Base Rent/Bond Fees

0 0 0

0 0 Alternative LOSP Split

0 0 Replacement Reserve Deposit

0 0 Operating Reserve Deposit

0 0 Other Required Reserve 1 Deposit

0 0

0

Sub-total Reserves/Ground Lease Base Rent/Bond Fees 0 0 0 Min DSCR: 1.09

Mortgage Rate: 5.00%

0 0 0 Term (Years): 30

Supportable 1st Mortgage Pmt: -

NET OPERATING INCOME (INCOME minus OP EXPENSES) 0 0 0 Supportable 1st Mortgage Amt: $0

Proposed 1st Mortgage Amt: $0

DEBT SERVICE/MUST PAY PAYMENTS ("hard debt"/amortized loans) Alternative LOSP Split

0 0 0 Hard Debt - First Lender

0 0 0 Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender)

0 0 0 Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender)

0 0 0 Hard Debt - Fourth Lender

0

TOTAL HARD DEBT SERVICE 0 0 0

CASH FLOW (NOI minus DEBT SERVICE) 0 0 0

Commercial Only Cash Flow 0

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income) 0 0 Allocation of Commercial Surplus to LOPS/non-LOSP (residual income)

AVAILABLE CASH FLOW 0 0 0

USES OF CASH FLOW BELOW (This row also shows DSCR.)

USES THAT PRECEDE MOHCD DEBT SERVICE IN WATERFALL

0 0

0 0

0 0 Alternative LOSP Split

0 0 Other Payments

0 0 Non-amortizing Loan Pmnt - Lender 1 (select lender in comments field)

0 0

0 0 #DIV/0! Deferred Developer Fee (Enter amt <= Max Fee from cell I130)

TOTAL PAYMENTS PRECEDING MOHCD 0 0 0

0 0 0

Residual Receipts Calculation

Yes Project has MOHCD ground lease? TBD

TBD

Max Deferred Developer Fee/Borrower % of Residual Receipts in Yr 1: 33% Sum of DD F from LOSP and non-LOSP:

67% Ratio of Sum of DDF and calculated 50%:

Soft Debt Lenders with Residual Receipts Obligations (Select lender name/program from drop down) Total Principal Amt

Distrib. of Soft

Debt Loans

100.00%

MOHCD/OCII - Ground Lease Value Ground Lease 0.00%

0.00%

0.00%

0.00%

MOHCD RESIDUAL RECEIPTS DEBT SERVICE

0 0

0 0

0 0

0

NON-MOHCD RESIDUAL RECEIPTS DEBT SERVICE

0

0

0

Total Non-MOHCD Residual Receipts Debt Service 0

REMAINDER (Should be zero unless there are

distributions below) 0

0

0

Final Balance (should be zero) 0

Other Distributions/Uses

Proposed MOHCD Residual Receipts Amount to Residual Ground Lease

HCD Residual Receipts Amount Due

Lender 4 Residual Receipts Due

Lender 5 Residual Receipts Due

Owner Distributions/Incentive Management Fee

Provide additional comments here, if needed.

HCD (soft debt loan) - Lender 3

Other Soft Debt Lender - Lender 4

Other Soft Debt Lender - Lender 5

MOHCD Residual Receipts Amount Due

Proposed MOHCD Residual Receipts Amount to Loan Repayment

MOHCD/OCII - Soft Debt Loans

Does Project have a MOHCD Residual Receipt Obligation?

% of Residual Receipts available for distribution to soft debt lenders in Yr 1:

RESIDUAL RECEIPTS (CASH FLOW minus PAYMENTS

PRECEDING MOHCD)

Will Project Defer Developer Fee?

Commercial Expenses

Hard Debt - Fourth Lender

Commercial Hard Debt Service

Deferred Developer Fee (Enter amt <= Max Fee from cell I130)

"Below-the-line" Asset Mgt fee (uncommon in new projects, see policy)

Partnership Management Fee (see policy for limits)

Other Required Reserve 2 Deposit

Required Reserve Deposit/s, Commercial

Hard Debt - First Lender

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender)

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender)

Investor Service Fee (aka "LP Asset Mgt Fee") (see policy for limits)

Other Payments

Non-amortizing Loan Pmnt - Lender 1 (select lender in comments field)

Non-amortizing Loan Pmnt - Lender 2 (select lender in comments field)

Provide additional comments here, if needed.

Provide additional comments here, if needed.

Director's & Officers' Liability Insurance

Payroll

Contracts

Garbage and Trash Removal

Security Payroll/Contract

Legal Expense - Property

Bad Debts

Electricity

Supplies

Audit Expense

Bookkeeping/Accounting Services

Miscellaneous

Water

Gas

Sewer

Real Estate Taxes

Payroll Taxes

Miscellaneous Taxes, Licenses and Permits

Property and Liability Insurance

Fidelity Bond Insurance

Worker's Compensation

TOTAL OPERATING EXPENSES

TOTAL OPERATING EXPENSES (w/ Reserves/GL Base Rent/ Bond

Fees)

REMAINING BALANCE AFTER MOHCD RESIDUAL RECEIPTS

DEBT SERVICE

Links from 'Commercial Op. Budget' Worksheet

Links from 'Commercial Op. Budget' Worksheet

Provide additional comments here, if needed.Ground Lease Base Rent

Bond Monitoring Fee

Replacement Reserve Deposit

Operating Reserve Deposit

Other Required Reserve 1 Deposit

HVAC Repairs and Maintenance

Vehicle and Maintenance Equipment Operation and Repairs

Miscellaneous Operating and Maintenance Expenses

Supportive Services

Links from 'Utilities & Other Income' Worksheet

Links from 'Utilities & Other Income' Worksheet

Links from 'Utilities & Other Income' Worksheet

Links from 'Utilities & Other Income' Worksheet

Links from 'Utilities & Other Income' Worksheet

Links from 'Commercial Op. Budget' Worksheet

Links from 'Commercial Op. Budget' Worksheet

Links from 'Utilities & Other Income' Worksheet

Links from 'Commercial Op. Budget' Worksheet

1st Year to be set according to HUD schedule.

0%

All MOHCD/OCII Loans payable from res. rects

If applicable, MOHCD residual receipts amt due LESS amt proposed for loan repymt.

Provide additional comments here, if needed.

Enter/override amount of residual receipts proposed for loan repayment.

Provide additional comments here, if needed.

Provide additional comments here, if needed.

Provide additional comments here, if needed.

67% of residual receipts, multiplied by 100% -- MOHCD's pro rata share of all soft debt

LOSP/non-LOSP Allocation

Residential - Tenant Rents

Residential - Tenant Assistance Payments (Non-LOSP)

Residential - LOSP Tenant Assistance Payments

Commercial Space

Residential Parking

Miscellaneous Rent Income

Supportive Services Income

Interest Income - Project Operations

Other Commercial Income

Laundry and Vending

Tenant Charges

Miscellaneous Residential Income

Withdrawal from Capitalized Reserve (deposit to operating account)

Vacancy Loss - Residential - Tenant Rents

Vacancy Loss - Residential - Tenant Assistance Payments

Vacancy Loss - Commercial

Other Salaries/Benefits

Administrative Rent-Free Unit

Advertising and Marketing

Office Expenses

Office Rent

Management Fee

Asset Management Fee

Office Salaries

Manager's Salary

Health Insurance and Other Benefits

1 of 2

MOHCD Proforma - Year 1 Operating Budget

0%

Total # Units: 0

First Year of Operations (provide data assuming that

Year 1 is a full year, i.e. 12 months of operations):

INCOME

Gross Potential Income

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

Management

Sub-total Management Expenses

Salaries/Benefits

Sub-total Salaries/Benefits

Administration

Sub-total Administration Expenses

Utilities

Sub-total Utilities

Taxes and Licenses

Sub-total Taxes and Licenses

Insurance

Sub-total Insurance

Maintenance & Repair

Sub-total Maintenance & Repair Expenses

Reserves/Ground Lease Base Rent/Bond Fees

Sub-total Reserves/Ground Lease Base Rent/Bond Fees

NET OPERATING INCOME (INCOME minus OP EXPENSES)

DEBT SERVICE/MUST PAY PAYMENTS ("hard debt"/amortized loans)

TOTAL HARD DEBT SERVICE

CASH FLOW (NOI minus DEBT SERVICE)

Commercial Only Cash Flow

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income)

AVAILABLE CASH FLOW

USES OF CASH FLOW BELOW (This row also shows DSCR.)

USES THAT PRECEDE MOHCD DEBT SERVICE IN WATERFALL

TOTAL PAYMENTS PRECEDING MOHCD

Residual Receipts Calculation

Max Deferred Developer Fee/Borrower % of Residual Receipts in Yr 1:

Soft Debt Lenders with Residual Receipts Obligations

MOHCD/OCII - Ground Lease Value

MOHCD RESIDUAL RECEIPTS DEBT SERVICE

NON-MOHCD RESIDUAL RECEIPTS DEBT SERVICE

Total Non-MOHCD Residual Receipts Debt Service

REMAINDER (Should be zero unless there are

distributions below)

Final Balance (should be zero)

Other Distributions/Uses

Proposed MOHCD Residual Receipts Amount to Residual Ground Lease

HCD Residual Receipts Amount Due

Lender 4 Residual Receipts Due

Lender 5 Residual Receipts Due

Owner Distributions/Incentive Management Fee

HCD (soft debt loan) - Lender 3

Other Soft Debt Lender - Lender 4

Other Soft Debt Lender - Lender 5

MOHCD Residual Receipts Amount Due

Proposed MOHCD Residual Receipts Amount to Loan Repayment

MOHCD/OCII - Soft Debt Loans

Does Project have a MOHCD Residual Receipt Obligation?

% of Residual Receipts available for distribution to soft debt lenders in Yr 1:

RESIDUAL RECEIPTS (CASH FLOW minus PAYMENTS

PRECEDING MOHCD)

Will Project Defer Developer Fee?

Commercial Expenses

Hard Debt - Fourth Lender

Commercial Hard Debt Service

Deferred Developer Fee (Enter amt <= Max Fee from cell I130)

"Below-the-line" Asset Mgt fee (uncommon in new projects, see policy)

Partnership Management Fee (see policy for limits)

Other Required Reserve 2 Deposit

Required Reserve Deposit/s, Commercial

Hard Debt - First Lender

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender)

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender)

Investor Service Fee (aka "LP Asset Mgt Fee") (see policy for limits)

Other Payments

Non-amortizing Loan Pmnt - Lender 1 (select lender in comments field)

Non-amortizing Loan Pmnt - Lender 2 (select lender in comments field)

Director's & Officers' Liability Insurance

Payroll

Contracts

Garbage and Trash Removal

Security Payroll/Contract

Legal Expense - Property

Bad Debts

Electricity

Supplies

Audit Expense

Bookkeeping/Accounting Services

Miscellaneous

Water

Gas

Sewer

Real Estate Taxes

Payroll Taxes

Miscellaneous Taxes, Licenses and Permits

Property and Liability Insurance

Fidelity Bond Insurance

Worker's Compensation

TOTAL OPERATING EXPENSES

TOTAL OPERATING EXPENSES (w/ Reserves/GL Base Rent/ Bond

Fees)

REMAINING BALANCE AFTER MOHCD RESIDUAL RECEIPTS

DEBT SERVICE

Ground Lease Base Rent

Bond Monitoring Fee

Replacement Reserve Deposit

Operating Reserve Deposit

Other Required Reserve 1 Deposit

HVAC Repairs and Maintenance

Vehicle and Maintenance Equipment Operation and Repairs

Miscellaneous Operating and Maintenance Expenses

Supportive Services

Residential - Tenant Rents

Residential - Tenant Assistance Payments (Non-LOSP)

Residential - LOSP Tenant Assistance Payments

Commercial Space

Residential Parking

Miscellaneous Rent Income

Supportive Services Income

Interest Income - Project Operations

Other Commercial Income

Laundry and Vending

Tenant Charges

Miscellaneous Residential Income

Withdrawal from Capitalized Reserve (deposit to operating account)

Vacancy Loss - Residential - Tenant Rents

Vacancy Loss - Residential - Tenant Assistance Payments

Vacancy Loss - Commercial

Other Salaries/Benefits

Administrative Rent-Free Unit

Advertising and Marketing

Office Expenses

Office Rent

Management Fee

Asset Management Fee

Office Salaries

Manager's Salary

Health Insurance and Other Benefits

non-LOSP Approved By (reqd)

Residential - Tenant Assistance Payments (Non-LOSP)

LOSP non-LOSP Approved By (reqd)

LOSP non-LOSP

LOSP non-LOSP Approved By (reqd)

Withdrawal from Capitalized Reserve (deposit to operating account)

LOSP non-LOSP Approved By (reqd)

LOSP non-LOSP Approved By (reqd)

LOSP non-LOSP

LOSP non-LOSP

LOSP non-LOSP

LOSP non-LOSP Approved By (reqd)

LOSP non-LOSP Approved By (reqd)

LOSP non-LOSP

LOSP non-LOSP Approved By (reqd)

LOSP non-LOSP Approved By (reqd)

LOSP non-LOSP Approved By (reqd)

LOSP non-LOSP Approved By (reqd)

0.00% 100.00%

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender)

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender)

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income)

LOSP non-LOSP Approved By (reqd)

Non-amortizing Loan Pmnt - Lender 1 (select lender in comments field)

0.00% 100.00%

0

#VALUE!

(only acceptable if LOSP-specific expenses are being

tracked at entry level in the project's accounting system)

(only acceptable if LOSP-specific expenses are being

tracked at entry level in the project's accounting system)

(only acceptable if LOSP-specific expenses are being

tracked at entry level in the project's accounting system)

(only acceptable if LOSP-specific expenses are being

tracked at entry level in the project's accounting system)

(only acceptable if LOSP-specific expenses are being

tracked at entry level in the project's accounting system)

2 of 2

MOHCD Proforma - 20 Year Cash Flow

Total # Units:LOSP

Units

Non-LOSP

Units 0 1 2

- 0 0

0.00% 0.00%

INCOME

% annual

inc LOSP

% annual

increase

Comments

(related to annual inc assumptions) LOSP non-LOSP Total LOSP

non-

LOSP Total LOSP

non-

LOSP Total

Residential - Tenant Rents 1.0% 2.5% - - - - - - - - -

Residential - Tenant Assistance Payments (Non-LOSP) n/a n/a - - - - - - -

Residential - LOSP Tenant Assistance Payments n/a n/a - - - - - -

Commercial Space n/a 2.5% - - -

Residential Parking 2.5% 2.5% - - - - - - - - -

Miscellaneous Rent Income 2.5% 2.5% - - - - - - - - -

Supportive Services Income 2.5% 2.5% - - - - - - - - -

Interest Income - Project Operations 2.5% 2.5% - - - - - - - - -

Laundry and Vending 2.5% 2.5% - - - - - - - - -

Tenant Charges 2.5% 2.5% - - - - - - - - -

Miscellaneous Residential Income 2.5% 2.5% - - - - - - - - -

Other Commercial Income n/a 2.5% - - -

Withdrawal from Capitalized Reserve (deposit to operating account) n/a n/aLink from Reserve Section below, as

applicable - - - - - - -

Gross Potential Income - - - - - - - - -

Vacancy Loss - Residential - Tenant Rents n/a n/a - - - - - - - - -

Vacancy Loss - Residential - Tenant Assistance Payments n/a n/a - - - - - - - - - Vacancy Loss - Commercial n/a n/a - - -

EFFECTIVE GROSS INCOME - - - - - - - - -

OPERATING EXPENSES

Management

Management Fee 3.5% 3.5%1st Year to be set according to HUD

schedule. - - - - - - - - -

Asset Management Fee 3.5% 3.5% per MOHCD policy - - - - - - - - -

Sub-total Management Expenses - - - - - - - - -

Salaries/Benefits

Office Salaries 3.5% 3.5% - - - - - - - - -

Manager's Salary 3.5% 3.5% - - - - - - - - -

Health Insurance and Other Benefits 3.5% 3.5% - - - - - - - - -

Other Salaries/Benefits 3.5% 3.5% - - - - - - - - -

Administrative Rent-Free Unit 3.5% 3.5% - - - - - - - - -

Sub-total Salaries/Benefits - - - - - - - - -

Administration

Advertising and Marketing 3.5% 3.5% - - - - - - - - -

Office Expenses 3.5% 3.5% - - - - - - - - -

Office Rent 3.5% 3.5% - - - - - - - - -

Legal Expense - Property 3.5% 3.5% - - - - - - - - -

Audit Expense 3.5% 3.5% - - - - - - - - -

Bookkeeping/Accounting Services 3.5% 3.5% - - - - - - - - -

Bad Debts 3.5% 3.5% - - - - - - - - -

Miscellaneous 3.5% 3.5% - - - - - - - - -

Sub-total Administration Expenses - - - - - - - - -

Utilities

Electricity 3.5% 3.5% - - - - - - - - -

Water 3.5% 3.5% - - - - - - - - -

Gas 3.5% 3.5% - - - - - - - - -

Sewer 3.5% 3.5% - - - - - - - - -

Sub-total Utilities - - - - - - - - -

Taxes and Licenses

Real Estate Taxes 3.5% 3.5% - - - - - - - - -

Payroll Taxes 3.5% 3.5% - - - - - - - - -

Miscellaneous Taxes, Licenses and Permits 3.5% 3.5% - - - - - - - - -

Sub-total Taxes and Licenses - - - - - - - - -

Insurance

Property and Liability Insurance 3.5% 3.5% - - - - - - - - -

Fidelity Bond Insurance 3.5% 3.5% - - - - - - - - -

Worker's Compensation 3.5% 3.5% - - - - - - - - -

Director's & Officers' Liability Insurance 3.5% 3.5% - - - - - - - - -

Sub-total Insurance - - - - - - - - -

Maintenance & Repair

Payroll 3.5% 3.5% - - - - - - - - -

Supplies 3.5% 3.5% - - - - - - - - -

Contracts 3.5% 3.5% - - - - - - - - -

Garbage and Trash Removal 3.5% 3.5% - - - - - - - - -

Security Payroll/Contract 3.5% 3.5% - - - - - - - - -

HVAC Repairs and Maintenance 3.5% 3.5% - - - - - - - - -

Vehicle and Maintenance Equipment Operation and Repairs 3.5% 3.5% - - - - - - - - -

Miscellaneous Operating and Maintenance Expenses 3.5% 3.5% - - - - - - - - -

Sub-total Maintenance & Repair Expenses - - - - - - - - -

Supportive Services 3.5% 3.5% - - - - - - - - -

Commercial Expenses - - -

TOTAL OPERATING EXPENSES - - - - - - - - -

PUPA (w/o Reserves/GL Base Rent/Bond Fees)

Reserves/Ground Lease Base Rent/Bond Fees Note: Hidden columns are in between total columns. To update/delete values in yellow cells, manipulate each cell rather than dragging across multiple cells.

Ground Lease Base Rent - - - - - - - - -

Bond Monitoring Fee - - - - - - - - -

Replacement Reserve Deposit - - - - - - - - -

Operating Reserve Deposit - - - - - - - - -

Other Required Reserve 1 Deposit - - - - - - - - -

Other Required Reserve 2 Deposit - - - - - - - - -

Required Reserve Deposit/s, Commercial - - - - - - - - -

Sub-total Reserves/Ground Lease Base Rent/Bond Fees - - - - - - - - -

TOTAL OPERATING EXPENSES (w/ Reserves/GL Base Rent/ Bond Fees) - - - - - - - - -

PUPA (w/ Reserves/GL Base Rent/Bond Fees)

NET OPERATING INCOME (INCOME minus OP EXPENSES) - - - - - - - - -

DEBT SERVICE/MUST PAY PAYMENTS ("hard debt"/amortized loans) Note: Hidden columns are in between total columns. To update/delete values in yellow cells, manipulate each cell rather than dragging across multiple cells.

Hard Debt - First Lender Enter comments re: annual increase, etc. - - - - - - - - -

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender) Enter comments re: annual increase, etc. - - - - - - - - -

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender) Enter comments re: annual increase, etc. - - - - - - - - -

Hard Debt - Fourth Lender Enter comments re: annual increase, etc. - - - - - - - - -

Commercial Hard Debt Service - - -

TOTAL HARD DEBT SERVICE - - - - - - - - -

CASH FLOW (NOI minus DEBT SERVICE) - - - - - - - - -

Commercial Only Cash Flow - - -

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income) - - - - - -

AVAILABLE CASH FLOW - - - - - - - - -

USES OF CASH FLOW BELOW (This row also shows DSCR.) DSCR:

USES THAT PRECEDE MOHCD DEBT SERVICE IN WATERFALL Note: Hidden columns are in between total columns. To update/delete values in yellow cells, manipulate each cell rather than dragging across multiple cells.

"Below-the-line" Asset Mgt fee (uncommon in new projects, see policy) 3.5% 3.5% per MOHCD policy - - - - - - -

Partnership Management Fee (see policy for limits) 3.5% 3.5% per MOHCD policy - - - - - - -

Investor Service Fee (aka "LP Asset Mgt Fee") (see policy for limits) per MOHCD policy no annual increase - - - - - - -

Other Payments - - - - - - -

Non-amortizing Loan Pmnt - Lender 1 Enter comments re: annual increase, etc. - - - - - - -

Non-amortizing Loan Pmnt - Lender 2 Enter comments re: annual increase, etc. - - - - - - -

Deferred Developer Fee (Enter amt <= Max Fee from row 131) - - - - - - -

TOTAL PAYMENTS PRECEDING MOHCD - - - - - - - - -

RESIDUAL RECEIPTS (CASH FLOW minus PAYMENTS PRECEDING MOHCD) - - - - - - - - -

Does Project have a MOHCD Residual Receipt Obligation? Yes

Will Project Defer Developer Fee? TBD

Residual Receipts split for all years. - Lender/Owner 67% / 33%

Max Deferred Developer Fee Amt:

Dist. Soft Cum. Deferred Developer Fee: - - -

MOHCD RESIDUAL RECEIPTS DEBT SERVICE Debt Loans

MOHCD Residual Receipts Amount Due 100.00%Allocation per pro rata share of all soft debt

loans, and MOHCD residual receipts policy - - -

Proposed MOHCD Residual Receipts Amount to Loan Repayment - - -

Proposed MOHCD Residual Receipts Amount to Residual Ground

LeaseProposed Total MOHCD Amt Due less Loan

Repayment - - -

NON-MOHCD RESIDUAL RECEIPTS DEBT SERVICEHCD Residual Receipts Amount Due 0.00% No HCD Financing - - -

Lender 4 Residual Receipts Due 0.00% - - -

Lender 5 Residual Receipts Due 0.00% - - -

Total Non-MOHCD Residual Receipts Debt Service - - -

REMAINDER (Should be zero unless there are distributions below) - - -

Owner Distributions/Incentive Management Fee - - -

Other Distributions/Uses -

Final Balance (should be zero) - - -

REPLACEMENT RESERVE - RUNNING BALANCE

Replacement Reserve Starting Balance - - -

Replacement Reserve Deposits - - -

Replacement Reserve Withdrawals (ideally tied to CNA) - - -

Replacement Reserve Interest

RR Running Balance - - -

RR Balance/Unit

OPERATING RESERVE - RUNNING BALANCE

Operating Reserve Starting Balance - - -

Operating Reserve Deposits - - -

Operating Reserve Withdrawals

Operating Reserve Interest

OR Running Balance - - -

OR Balance as a % of Prior Yr Op Exps + Debt Service #DIV/0! #DIV/0!

OTHER REQUIRED RESERVE 1 - RUNNING BALANCE

Other Reserve 1 Starting Balance - -

Other Reserve 1 Deposits - - -

Other Reserve 1 Withdrawals

Other Reserve 1 Interest

Other Required Reserve 1 Running Balance - - -

OTHER RESERVE 2 - RUNNING BALANCE

Other Reserve 2 Starting Balance - -

2

Enter formulas manually per relevant MOH

policy; annual incrementing usually not

appropriate

Year 1

0

Year 2

1

Year 3

1 of 14

MOHCD Proforma - 20 Year Cash Flow

Total # Units:LOSP

Units

Non-LOSP

Units

- 0 0

0.00% 0.00%

INCOME

% annual

inc LOSP

% annual

increase

Comments

(related to annual inc assumptions)

Residential - Tenant Rents 1.0% 2.5%

Residential - Tenant Assistance Payments (Non-LOSP) n/a n/a

Residential - LOSP Tenant Assistance Payments n/a n/a

Commercial Space n/a 2.5%

Residential Parking 2.5% 2.5%

Miscellaneous Rent Income 2.5% 2.5%

Supportive Services Income 2.5% 2.5%

Interest Income - Project Operations 2.5% 2.5%

Laundry and Vending 2.5% 2.5%

Tenant Charges 2.5% 2.5%

Miscellaneous Residential Income 2.5% 2.5%

Other Commercial Income n/a 2.5%

Withdrawal from Capitalized Reserve (deposit to operating account) n/a n/aLink from Reserve Section below, as

applicable

Gross Potential Income

Vacancy Loss - Residential - Tenant Rents n/a n/a

Vacancy Loss - Residential - Tenant Assistance Payments n/a n/aVacancy Loss - Commercial n/a n/a

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

Management

Management Fee 3.5% 3.5%1st Year to be set according to HUD

schedule.

Asset Management Fee 3.5% 3.5% per MOHCD policy

Sub-total Management Expenses

Salaries/Benefits

Office Salaries 3.5% 3.5%

Manager's Salary 3.5% 3.5%

Health Insurance and Other Benefits 3.5% 3.5%

Other Salaries/Benefits 3.5% 3.5%

Administrative Rent-Free Unit 3.5% 3.5%

Sub-total Salaries/Benefits

Administration

Advertising and Marketing 3.5% 3.5%

Office Expenses 3.5% 3.5%

Office Rent 3.5% 3.5%

Legal Expense - Property 3.5% 3.5%

Audit Expense 3.5% 3.5%

Bookkeeping/Accounting Services 3.5% 3.5%

Bad Debts 3.5% 3.5%

Miscellaneous 3.5% 3.5%

Sub-total Administration Expenses

Utilities

Electricity 3.5% 3.5%

Water 3.5% 3.5%

Gas 3.5% 3.5%

Sewer 3.5% 3.5%

Sub-total Utilities

Taxes and Licenses

Real Estate Taxes 3.5% 3.5%

Payroll Taxes 3.5% 3.5%

Miscellaneous Taxes, Licenses and Permits 3.5% 3.5%

Sub-total Taxes and Licenses

Insurance

Property and Liability Insurance 3.5% 3.5%

Fidelity Bond Insurance 3.5% 3.5%

Worker's Compensation 3.5% 3.5%

Director's & Officers' Liability Insurance 3.5% 3.5%

Sub-total Insurance

Maintenance & Repair

Payroll 3.5% 3.5%

Supplies 3.5% 3.5%

Contracts 3.5% 3.5%

Garbage and Trash Removal 3.5% 3.5%

Security Payroll/Contract 3.5% 3.5%

HVAC Repairs and Maintenance 3.5% 3.5%

Vehicle and Maintenance Equipment Operation and Repairs 3.5% 3.5%

Miscellaneous Operating and Maintenance Expenses 3.5% 3.5%

Sub-total Maintenance & Repair Expenses

Supportive Services 3.5% 3.5%

Commercial Expenses

TOTAL OPERATING EXPENSES

PUPA (w/o Reserves/GL Base Rent/Bond Fees)

Reserves/Ground Lease Base Rent/Bond Fees

Ground Lease Base Rent

Bond Monitoring Fee

Replacement Reserve Deposit

Operating Reserve Deposit

Other Required Reserve 1 Deposit

Other Required Reserve 2 Deposit

Required Reserve Deposit/s, Commercial

Sub-total Reserves/Ground Lease Base Rent/Bond Fees

TOTAL OPERATING EXPENSES (w/ Reserves/GL Base Rent/ Bond Fees)

PUPA (w/ Reserves/GL Base Rent/Bond Fees)

NET OPERATING INCOME (INCOME minus OP EXPENSES)

DEBT SERVICE/MUST PAY PAYMENTS ("hard debt"/amortized loans)

Hard Debt - First Lender Enter comments re: annual increase, etc.

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender) Enter comments re: annual increase, etc.

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender) Enter comments re: annual increase, etc.

Hard Debt - Fourth Lender Enter comments re: annual increase, etc.

Commercial Hard Debt Service

TOTAL HARD DEBT SERVICE

CASH FLOW (NOI minus DEBT SERVICE)

Commercial Only Cash Flow

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income)

AVAILABLE CASH FLOW

USES OF CASH FLOW BELOW (This row also shows DSCR.) DSCR:

USES THAT PRECEDE MOHCD DEBT SERVICE IN WATERFALL

"Below-the-line" Asset Mgt fee (uncommon in new projects, see policy) 3.5% 3.5% per MOHCD policy

Partnership Management Fee (see policy for limits) 3.5% 3.5% per MOHCD policy

Investor Service Fee (aka "LP Asset Mgt Fee") (see policy for limits) per MOHCD policy no annual increase

Other Payments

Non-amortizing Loan Pmnt - Lender 1 Enter comments re: annual increase, etc.

Non-amortizing Loan Pmnt - Lender 2 Enter comments re: annual increase, etc.

Deferred Developer Fee (Enter amt <= Max Fee from row 131)

TOTAL PAYMENTS PRECEDING MOHCD

RESIDUAL RECEIPTS (CASH FLOW minus PAYMENTS PRECEDING MOHCD)

Does Project have a MOHCD Residual Receipt Obligation? Yes

Will Project Defer Developer Fee? TBD

Residual Receipts split for all years. - Lender/Owner 67% / 33%

Dist. Soft

MOHCD RESIDUAL RECEIPTS DEBT SERVICE Debt Loans

MOHCD Residual Receipts Amount Due 100.00%Allocation per pro rata share of all soft debt

loans, and MOHCD residual receipts policy

Proposed MOHCD Residual Receipts Amount to Loan Repayment

Proposed MOHCD Residual Receipts Amount to Residual Ground

LeaseProposed Total MOHCD Amt Due less Loan

Repayment

NON-MOHCD RESIDUAL RECEIPTS DEBT SERVICEHCD Residual Receipts Amount Due 0.00% No HCD Financing

Lender 4 Residual Receipts Due 0.00%

Lender 5 Residual Receipts Due 0.00%

Total Non-MOHCD Residual Receipts Debt Service

REMAINDER (Should be zero unless there are distributions below)

Owner Distributions/Incentive Management Fee

Other Distributions/Uses

Final Balance (should be zero)

REPLACEMENT RESERVE - RUNNING BALANCE

Replacement Reserve Starting Balance

Replacement Reserve Deposits

Replacement Reserve Withdrawals (ideally tied to CNA)

Replacement Reserve Interest

RR Running Balance

RR Balance/Unit

OPERATING RESERVE - RUNNING BALANCE

Operating Reserve Starting Balance

Operating Reserve Deposits

Operating Reserve Withdrawals

Operating Reserve Interest

OR Running Balance

OR Balance as a % of Prior Yr Op Exps + Debt Service

OTHER REQUIRED RESERVE 1 - RUNNING BALANCE

Other Reserve 1 Starting Balance

Other Reserve 1 Deposits

Other Reserve 1 Withdrawals

Other Reserve 1 Interest

Other Required Reserve 1 Running Balance

OTHER RESERVE 2 - RUNNING BALANCE

Other Reserve 2 Starting Balance

Enter formulas manually per relevant MOH

policy; annual incrementing usually not

appropriate

3 4 5

LOSP non-LOSP Total LOSP non-LOSP Total LOSP non-LOSP Total

- - - - - - - - -

- - - - - -

- - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - - - - -

Note: Hidden columns are in between total columns. To update/delete values in yellow cells, manipulate each cell rather than dragging across multiple cells.

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

Note: Hidden columns are in between total columns. To update/delete values in yellow cells, manipulate each cell rather than dragging across multiple cells.

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - -

- - - - - - - - -

Note: Hidden columns are in between total columns. To update/delete values in yellow cells, manipulate each cell rather than dragging across multiple cells.

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

#DIV/0! #DIV/0! #DIV/0!

- - -

- - -

- - -

- - -

3 4 5

Year 5 Year 6

Year 4

3 of 14

MOHCD Proforma - 20 Year Cash Flow

Total # Units:LOSP

Units

Non-LOSP

Units

- 0 0

0.00% 0.00%

INCOME

% annual

inc LOSP

% annual

increase

Comments

(related to annual inc assumptions)

Residential - Tenant Rents 1.0% 2.5%

Residential - Tenant Assistance Payments (Non-LOSP) n/a n/a

Residential - LOSP Tenant Assistance Payments n/a n/a

Commercial Space n/a 2.5%

Residential Parking 2.5% 2.5%

Miscellaneous Rent Income 2.5% 2.5%

Supportive Services Income 2.5% 2.5%

Interest Income - Project Operations 2.5% 2.5%

Laundry and Vending 2.5% 2.5%

Tenant Charges 2.5% 2.5%

Miscellaneous Residential Income 2.5% 2.5%

Other Commercial Income n/a 2.5%

Withdrawal from Capitalized Reserve (deposit to operating account) n/a n/aLink from Reserve Section below, as

applicable

Gross Potential Income

Vacancy Loss - Residential - Tenant Rents n/a n/a

Vacancy Loss - Residential - Tenant Assistance Payments n/a n/aVacancy Loss - Commercial n/a n/a

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

Management

Management Fee 3.5% 3.5%1st Year to be set according to HUD

schedule.

Asset Management Fee 3.5% 3.5% per MOHCD policy

Sub-total Management Expenses

Salaries/Benefits

Office Salaries 3.5% 3.5%

Manager's Salary 3.5% 3.5%

Health Insurance and Other Benefits 3.5% 3.5%

Other Salaries/Benefits 3.5% 3.5%

Administrative Rent-Free Unit 3.5% 3.5%

Sub-total Salaries/Benefits

Administration

Advertising and Marketing 3.5% 3.5%

Office Expenses 3.5% 3.5%

Office Rent 3.5% 3.5%

Legal Expense - Property 3.5% 3.5%

Audit Expense 3.5% 3.5%

Bookkeeping/Accounting Services 3.5% 3.5%

Bad Debts 3.5% 3.5%

Miscellaneous 3.5% 3.5%

Sub-total Administration Expenses

Utilities

Electricity 3.5% 3.5%

Water 3.5% 3.5%

Gas 3.5% 3.5%

Sewer 3.5% 3.5%

Sub-total Utilities

Taxes and Licenses

Real Estate Taxes 3.5% 3.5%

Payroll Taxes 3.5% 3.5%

Miscellaneous Taxes, Licenses and Permits 3.5% 3.5%

Sub-total Taxes and Licenses

Insurance

Property and Liability Insurance 3.5% 3.5%

Fidelity Bond Insurance 3.5% 3.5%

Worker's Compensation 3.5% 3.5%

Director's & Officers' Liability Insurance 3.5% 3.5%

Sub-total Insurance

Maintenance & Repair

Payroll 3.5% 3.5%

Supplies 3.5% 3.5%

Contracts 3.5% 3.5%

Garbage and Trash Removal 3.5% 3.5%

Security Payroll/Contract 3.5% 3.5%

HVAC Repairs and Maintenance 3.5% 3.5%

Vehicle and Maintenance Equipment Operation and Repairs 3.5% 3.5%

Miscellaneous Operating and Maintenance Expenses 3.5% 3.5%

Sub-total Maintenance & Repair Expenses

Supportive Services 3.5% 3.5%

Commercial Expenses

TOTAL OPERATING EXPENSES

PUPA (w/o Reserves/GL Base Rent/Bond Fees)

Reserves/Ground Lease Base Rent/Bond Fees

Ground Lease Base Rent

Bond Monitoring Fee

Replacement Reserve Deposit

Operating Reserve Deposit

Other Required Reserve 1 Deposit

Other Required Reserve 2 Deposit

Required Reserve Deposit/s, Commercial

Sub-total Reserves/Ground Lease Base Rent/Bond Fees

TOTAL OPERATING EXPENSES (w/ Reserves/GL Base Rent/ Bond Fees)

PUPA (w/ Reserves/GL Base Rent/Bond Fees)

NET OPERATING INCOME (INCOME minus OP EXPENSES)

DEBT SERVICE/MUST PAY PAYMENTS ("hard debt"/amortized loans)

Hard Debt - First Lender Enter comments re: annual increase, etc.

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender) Enter comments re: annual increase, etc.

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender) Enter comments re: annual increase, etc.

Hard Debt - Fourth Lender Enter comments re: annual increase, etc.

Commercial Hard Debt Service

TOTAL HARD DEBT SERVICE

CASH FLOW (NOI minus DEBT SERVICE)

Commercial Only Cash Flow

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income)

AVAILABLE CASH FLOW

USES OF CASH FLOW BELOW (This row also shows DSCR.) DSCR:

USES THAT PRECEDE MOHCD DEBT SERVICE IN WATERFALL

"Below-the-line" Asset Mgt fee (uncommon in new projects, see policy) 3.5% 3.5% per MOHCD policy

Partnership Management Fee (see policy for limits) 3.5% 3.5% per MOHCD policy

Investor Service Fee (aka "LP Asset Mgt Fee") (see policy for limits) per MOHCD policy no annual increase

Other Payments

Non-amortizing Loan Pmnt - Lender 1 Enter comments re: annual increase, etc.

Non-amortizing Loan Pmnt - Lender 2 Enter comments re: annual increase, etc.

Deferred Developer Fee (Enter amt <= Max Fee from row 131)

TOTAL PAYMENTS PRECEDING MOHCD

RESIDUAL RECEIPTS (CASH FLOW minus PAYMENTS PRECEDING MOHCD)

Does Project have a MOHCD Residual Receipt Obligation? Yes

Will Project Defer Developer Fee? TBD

Residual Receipts split for all years. - Lender/Owner 67% / 33%

Dist. Soft

MOHCD RESIDUAL RECEIPTS DEBT SERVICE Debt Loans

MOHCD Residual Receipts Amount Due 100.00%Allocation per pro rata share of all soft debt

loans, and MOHCD residual receipts policy

Proposed MOHCD Residual Receipts Amount to Loan Repayment

Proposed MOHCD Residual Receipts Amount to Residual Ground

LeaseProposed Total MOHCD Amt Due less Loan

Repayment

NON-MOHCD RESIDUAL RECEIPTS DEBT SERVICEHCD Residual Receipts Amount Due 0.00% No HCD Financing

Lender 4 Residual Receipts Due 0.00%

Lender 5 Residual Receipts Due 0.00%

Total Non-MOHCD Residual Receipts Debt Service

REMAINDER (Should be zero unless there are distributions below)

Owner Distributions/Incentive Management Fee

Other Distributions/Uses

Final Balance (should be zero)

REPLACEMENT RESERVE - RUNNING BALANCE

Replacement Reserve Starting Balance

Replacement Reserve Deposits

Replacement Reserve Withdrawals (ideally tied to CNA)

Replacement Reserve Interest

RR Running Balance

RR Balance/Unit

OPERATING RESERVE - RUNNING BALANCE

Operating Reserve Starting Balance

Operating Reserve Deposits

Operating Reserve Withdrawals

Operating Reserve Interest

OR Running Balance

OR Balance as a % of Prior Yr Op Exps + Debt Service

OTHER REQUIRED RESERVE 1 - RUNNING BALANCE

Other Reserve 1 Starting Balance

Other Reserve 1 Deposits

Other Reserve 1 Withdrawals

Other Reserve 1 Interest

Other Required Reserve 1 Running Balance

OTHER RESERVE 2 - RUNNING BALANCE

Other Reserve 2 Starting Balance

Enter formulas manually per relevant MOH

policy; annual incrementing usually not

appropriate

6 7 8

LOSP non-LOSP Total LOSP non-LOSP Total LOSP non-LOSP Total

- - - - - - - - -

- - - - - -

- - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - -

- - - - - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

#DIV/0! #DIV/0! #DIV/0!

- - -

- - -

- - -

- - -

6 7 8

Year 7 Year 8 Year 9

5 of 14

MOHCD Proforma - 20 Year Cash Flow

Total # Units:LOSP

Units

Non-LOSP

Units

- 0 0

0.00% 0.00%

INCOME

% annual

inc LOSP

% annual

increase

Comments

(related to annual inc assumptions)

Residential - Tenant Rents 1.0% 2.5%

Residential - Tenant Assistance Payments (Non-LOSP) n/a n/a

Residential - LOSP Tenant Assistance Payments n/a n/a

Commercial Space n/a 2.5%

Residential Parking 2.5% 2.5%

Miscellaneous Rent Income 2.5% 2.5%

Supportive Services Income 2.5% 2.5%

Interest Income - Project Operations 2.5% 2.5%

Laundry and Vending 2.5% 2.5%

Tenant Charges 2.5% 2.5%

Miscellaneous Residential Income 2.5% 2.5%

Other Commercial Income n/a 2.5%

Withdrawal from Capitalized Reserve (deposit to operating account) n/a n/aLink from Reserve Section below, as

applicable

Gross Potential Income

Vacancy Loss - Residential - Tenant Rents n/a n/a

Vacancy Loss - Residential - Tenant Assistance Payments n/a n/aVacancy Loss - Commercial n/a n/a

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

Management

Management Fee 3.5% 3.5%1st Year to be set according to HUD

schedule.

Asset Management Fee 3.5% 3.5% per MOHCD policy

Sub-total Management Expenses

Salaries/Benefits

Office Salaries 3.5% 3.5%

Manager's Salary 3.5% 3.5%

Health Insurance and Other Benefits 3.5% 3.5%

Other Salaries/Benefits 3.5% 3.5%

Administrative Rent-Free Unit 3.5% 3.5%

Sub-total Salaries/Benefits

Administration

Advertising and Marketing 3.5% 3.5%

Office Expenses 3.5% 3.5%

Office Rent 3.5% 3.5%

Legal Expense - Property 3.5% 3.5%

Audit Expense 3.5% 3.5%

Bookkeeping/Accounting Services 3.5% 3.5%

Bad Debts 3.5% 3.5%

Miscellaneous 3.5% 3.5%

Sub-total Administration Expenses

Utilities

Electricity 3.5% 3.5%

Water 3.5% 3.5%

Gas 3.5% 3.5%

Sewer 3.5% 3.5%

Sub-total Utilities

Taxes and Licenses

Real Estate Taxes 3.5% 3.5%

Payroll Taxes 3.5% 3.5%

Miscellaneous Taxes, Licenses and Permits 3.5% 3.5%

Sub-total Taxes and Licenses

Insurance

Property and Liability Insurance 3.5% 3.5%

Fidelity Bond Insurance 3.5% 3.5%

Worker's Compensation 3.5% 3.5%

Director's & Officers' Liability Insurance 3.5% 3.5%

Sub-total Insurance

Maintenance & Repair

Payroll 3.5% 3.5%

Supplies 3.5% 3.5%

Contracts 3.5% 3.5%

Garbage and Trash Removal 3.5% 3.5%

Security Payroll/Contract 3.5% 3.5%

HVAC Repairs and Maintenance 3.5% 3.5%

Vehicle and Maintenance Equipment Operation and Repairs 3.5% 3.5%

Miscellaneous Operating and Maintenance Expenses 3.5% 3.5%

Sub-total Maintenance & Repair Expenses

Supportive Services 3.5% 3.5%

Commercial Expenses

TOTAL OPERATING EXPENSES

PUPA (w/o Reserves/GL Base Rent/Bond Fees)

Reserves/Ground Lease Base Rent/Bond Fees

Ground Lease Base Rent

Bond Monitoring Fee

Replacement Reserve Deposit

Operating Reserve Deposit

Other Required Reserve 1 Deposit

Other Required Reserve 2 Deposit

Required Reserve Deposit/s, Commercial

Sub-total Reserves/Ground Lease Base Rent/Bond Fees

TOTAL OPERATING EXPENSES (w/ Reserves/GL Base Rent/ Bond Fees)

PUPA (w/ Reserves/GL Base Rent/Bond Fees)

NET OPERATING INCOME (INCOME minus OP EXPENSES)

DEBT SERVICE/MUST PAY PAYMENTS ("hard debt"/amortized loans)

Hard Debt - First Lender Enter comments re: annual increase, etc.

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender) Enter comments re: annual increase, etc.

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender) Enter comments re: annual increase, etc.

Hard Debt - Fourth Lender Enter comments re: annual increase, etc.

Commercial Hard Debt Service

TOTAL HARD DEBT SERVICE

CASH FLOW (NOI minus DEBT SERVICE)

Commercial Only Cash Flow

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income)

AVAILABLE CASH FLOW

USES OF CASH FLOW BELOW (This row also shows DSCR.) DSCR:

USES THAT PRECEDE MOHCD DEBT SERVICE IN WATERFALL

"Below-the-line" Asset Mgt fee (uncommon in new projects, see policy) 3.5% 3.5% per MOHCD policy

Partnership Management Fee (see policy for limits) 3.5% 3.5% per MOHCD policy

Investor Service Fee (aka "LP Asset Mgt Fee") (see policy for limits) per MOHCD policy no annual increase

Other Payments

Non-amortizing Loan Pmnt - Lender 1 Enter comments re: annual increase, etc.

Non-amortizing Loan Pmnt - Lender 2 Enter comments re: annual increase, etc.

Deferred Developer Fee (Enter amt <= Max Fee from row 131)

TOTAL PAYMENTS PRECEDING MOHCD

RESIDUAL RECEIPTS (CASH FLOW minus PAYMENTS PRECEDING MOHCD)

Does Project have a MOHCD Residual Receipt Obligation? Yes

Will Project Defer Developer Fee? TBD

Residual Receipts split for all years. - Lender/Owner 67% / 33%

Dist. Soft

MOHCD RESIDUAL RECEIPTS DEBT SERVICE Debt Loans

MOHCD Residual Receipts Amount Due 100.00%Allocation per pro rata share of all soft debt

loans, and MOHCD residual receipts policy

Proposed MOHCD Residual Receipts Amount to Loan Repayment

Proposed MOHCD Residual Receipts Amount to Residual Ground

LeaseProposed Total MOHCD Amt Due less Loan

Repayment

NON-MOHCD RESIDUAL RECEIPTS DEBT SERVICEHCD Residual Receipts Amount Due 0.00% No HCD Financing

Lender 4 Residual Receipts Due 0.00%

Lender 5 Residual Receipts Due 0.00%

Total Non-MOHCD Residual Receipts Debt Service

REMAINDER (Should be zero unless there are distributions below)

Owner Distributions/Incentive Management Fee

Other Distributions/Uses

Final Balance (should be zero)

REPLACEMENT RESERVE - RUNNING BALANCE

Replacement Reserve Starting Balance

Replacement Reserve Deposits

Replacement Reserve Withdrawals (ideally tied to CNA)

Replacement Reserve Interest

RR Running Balance

RR Balance/Unit

OPERATING RESERVE - RUNNING BALANCE

Operating Reserve Starting Balance

Operating Reserve Deposits

Operating Reserve Withdrawals

Operating Reserve Interest

OR Running Balance

OR Balance as a % of Prior Yr Op Exps + Debt Service

OTHER REQUIRED RESERVE 1 - RUNNING BALANCE

Other Reserve 1 Starting Balance

Other Reserve 1 Deposits

Other Reserve 1 Withdrawals

Other Reserve 1 Interest

Other Required Reserve 1 Running Balance

OTHER RESERVE 2 - RUNNING BALANCE

Other Reserve 2 Starting Balance

Enter formulas manually per relevant MOH

policy; annual incrementing usually not

appropriate

9 10 11

LOSP non-LOSP Total LOSP non-LOSP Total LOSP non-LOSP Total

- - - - - - - - -

- - - - - -

- - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - -

- - - - - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

#DIV/0! #DIV/0! #DIV/0!

- - -

- - -

- - -

- - -

9 10 11

Year 10 Year 11 Year 12

7 of 14

MOHCD Proforma - 20 Year Cash Flow

Total # Units:LOSP

Units

Non-LOSP

Units

- 0 0

0.00% 0.00%

INCOME

% annual

inc LOSP

% annual

increase

Comments

(related to annual inc assumptions)

Residential - Tenant Rents 1.0% 2.5%

Residential - Tenant Assistance Payments (Non-LOSP) n/a n/a

Residential - LOSP Tenant Assistance Payments n/a n/a

Commercial Space n/a 2.5%

Residential Parking 2.5% 2.5%

Miscellaneous Rent Income 2.5% 2.5%

Supportive Services Income 2.5% 2.5%

Interest Income - Project Operations 2.5% 2.5%

Laundry and Vending 2.5% 2.5%

Tenant Charges 2.5% 2.5%

Miscellaneous Residential Income 2.5% 2.5%

Other Commercial Income n/a 2.5%

Withdrawal from Capitalized Reserve (deposit to operating account) n/a n/aLink from Reserve Section below, as

applicable

Gross Potential Income

Vacancy Loss - Residential - Tenant Rents n/a n/a

Vacancy Loss - Residential - Tenant Assistance Payments n/a n/aVacancy Loss - Commercial n/a n/a

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

Management

Management Fee 3.5% 3.5%1st Year to be set according to HUD

schedule.

Asset Management Fee 3.5% 3.5% per MOHCD policy

Sub-total Management Expenses

Salaries/Benefits

Office Salaries 3.5% 3.5%

Manager's Salary 3.5% 3.5%

Health Insurance and Other Benefits 3.5% 3.5%

Other Salaries/Benefits 3.5% 3.5%

Administrative Rent-Free Unit 3.5% 3.5%

Sub-total Salaries/Benefits

Administration

Advertising and Marketing 3.5% 3.5%

Office Expenses 3.5% 3.5%

Office Rent 3.5% 3.5%

Legal Expense - Property 3.5% 3.5%

Audit Expense 3.5% 3.5%

Bookkeeping/Accounting Services 3.5% 3.5%

Bad Debts 3.5% 3.5%

Miscellaneous 3.5% 3.5%

Sub-total Administration Expenses

Utilities

Electricity 3.5% 3.5%

Water 3.5% 3.5%

Gas 3.5% 3.5%

Sewer 3.5% 3.5%

Sub-total Utilities

Taxes and Licenses

Real Estate Taxes 3.5% 3.5%

Payroll Taxes 3.5% 3.5%

Miscellaneous Taxes, Licenses and Permits 3.5% 3.5%

Sub-total Taxes and Licenses

Insurance

Property and Liability Insurance 3.5% 3.5%

Fidelity Bond Insurance 3.5% 3.5%

Worker's Compensation 3.5% 3.5%

Director's & Officers' Liability Insurance 3.5% 3.5%

Sub-total Insurance

Maintenance & Repair

Payroll 3.5% 3.5%

Supplies 3.5% 3.5%

Contracts 3.5% 3.5%

Garbage and Trash Removal 3.5% 3.5%

Security Payroll/Contract 3.5% 3.5%

HVAC Repairs and Maintenance 3.5% 3.5%

Vehicle and Maintenance Equipment Operation and Repairs 3.5% 3.5%

Miscellaneous Operating and Maintenance Expenses 3.5% 3.5%

Sub-total Maintenance & Repair Expenses

Supportive Services 3.5% 3.5%

Commercial Expenses

TOTAL OPERATING EXPENSES

PUPA (w/o Reserves/GL Base Rent/Bond Fees)

Reserves/Ground Lease Base Rent/Bond Fees

Ground Lease Base Rent

Bond Monitoring Fee

Replacement Reserve Deposit

Operating Reserve Deposit

Other Required Reserve 1 Deposit

Other Required Reserve 2 Deposit

Required Reserve Deposit/s, Commercial

Sub-total Reserves/Ground Lease Base Rent/Bond Fees

TOTAL OPERATING EXPENSES (w/ Reserves/GL Base Rent/ Bond Fees)

PUPA (w/ Reserves/GL Base Rent/Bond Fees)

NET OPERATING INCOME (INCOME minus OP EXPENSES)

DEBT SERVICE/MUST PAY PAYMENTS ("hard debt"/amortized loans)

Hard Debt - First Lender Enter comments re: annual increase, etc.

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender) Enter comments re: annual increase, etc.

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender) Enter comments re: annual increase, etc.

Hard Debt - Fourth Lender Enter comments re: annual increase, etc.

Commercial Hard Debt Service

TOTAL HARD DEBT SERVICE

CASH FLOW (NOI minus DEBT SERVICE)

Commercial Only Cash Flow

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income)

AVAILABLE CASH FLOW

USES OF CASH FLOW BELOW (This row also shows DSCR.) DSCR:

USES THAT PRECEDE MOHCD DEBT SERVICE IN WATERFALL

"Below-the-line" Asset Mgt fee (uncommon in new projects, see policy) 3.5% 3.5% per MOHCD policy

Partnership Management Fee (see policy for limits) 3.5% 3.5% per MOHCD policy

Investor Service Fee (aka "LP Asset Mgt Fee") (see policy for limits) per MOHCD policy no annual increase

Other Payments

Non-amortizing Loan Pmnt - Lender 1 Enter comments re: annual increase, etc.

Non-amortizing Loan Pmnt - Lender 2 Enter comments re: annual increase, etc.

Deferred Developer Fee (Enter amt <= Max Fee from row 131)

TOTAL PAYMENTS PRECEDING MOHCD

RESIDUAL RECEIPTS (CASH FLOW minus PAYMENTS PRECEDING MOHCD)

Does Project have a MOHCD Residual Receipt Obligation? Yes

Will Project Defer Developer Fee? TBD

Residual Receipts split for all years. - Lender/Owner 67% / 33%

Dist. Soft

MOHCD RESIDUAL RECEIPTS DEBT SERVICE Debt Loans

MOHCD Residual Receipts Amount Due 100.00%Allocation per pro rata share of all soft debt

loans, and MOHCD residual receipts policy

Proposed MOHCD Residual Receipts Amount to Loan Repayment

Proposed MOHCD Residual Receipts Amount to Residual Ground

LeaseProposed Total MOHCD Amt Due less Loan

Repayment

NON-MOHCD RESIDUAL RECEIPTS DEBT SERVICEHCD Residual Receipts Amount Due 0.00% No HCD Financing

Lender 4 Residual Receipts Due 0.00%

Lender 5 Residual Receipts Due 0.00%

Total Non-MOHCD Residual Receipts Debt Service

REMAINDER (Should be zero unless there are distributions below)

Owner Distributions/Incentive Management Fee

Other Distributions/Uses

Final Balance (should be zero)

REPLACEMENT RESERVE - RUNNING BALANCE

Replacement Reserve Starting Balance

Replacement Reserve Deposits

Replacement Reserve Withdrawals (ideally tied to CNA)

Replacement Reserve Interest

RR Running Balance

RR Balance/Unit

OPERATING RESERVE - RUNNING BALANCE

Operating Reserve Starting Balance

Operating Reserve Deposits

Operating Reserve Withdrawals

Operating Reserve Interest

OR Running Balance

OR Balance as a % of Prior Yr Op Exps + Debt Service

OTHER REQUIRED RESERVE 1 - RUNNING BALANCE

Other Reserve 1 Starting Balance

Other Reserve 1 Deposits

Other Reserve 1 Withdrawals

Other Reserve 1 Interest

Other Required Reserve 1 Running Balance

OTHER RESERVE 2 - RUNNING BALANCE

Other Reserve 2 Starting Balance

Enter formulas manually per relevant MOH

policy; annual incrementing usually not

appropriate

12 13 14

LOSP non-LOSP Total LOSP non-LOSP Total LOSP non-LOSP Total

- - - - - - - - -

- - - - - -

- - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

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#DIV/0! #DIV/0! #DIV/0!

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12 13

Year 13 Year 14

14

Year 15

9 of 14

MOHCD Proforma - 20 Year Cash Flow

Total # Units:LOSP

Units

Non-LOSP

Units

- 0 0

0.00% 0.00%

INCOME

% annual

inc LOSP

% annual

increase

Comments

(related to annual inc assumptions)

Residential - Tenant Rents 1.0% 2.5%

Residential - Tenant Assistance Payments (Non-LOSP) n/a n/a

Residential - LOSP Tenant Assistance Payments n/a n/a

Commercial Space n/a 2.5%

Residential Parking 2.5% 2.5%

Miscellaneous Rent Income 2.5% 2.5%

Supportive Services Income 2.5% 2.5%

Interest Income - Project Operations 2.5% 2.5%

Laundry and Vending 2.5% 2.5%

Tenant Charges 2.5% 2.5%

Miscellaneous Residential Income 2.5% 2.5%

Other Commercial Income n/a 2.5%

Withdrawal from Capitalized Reserve (deposit to operating account) n/a n/aLink from Reserve Section below, as

applicable

Gross Potential Income

Vacancy Loss - Residential - Tenant Rents n/a n/a

Vacancy Loss - Residential - Tenant Assistance Payments n/a n/aVacancy Loss - Commercial n/a n/a

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

Management

Management Fee 3.5% 3.5%1st Year to be set according to HUD

schedule.

Asset Management Fee 3.5% 3.5% per MOHCD policy

Sub-total Management Expenses

Salaries/Benefits

Office Salaries 3.5% 3.5%

Manager's Salary 3.5% 3.5%

Health Insurance and Other Benefits 3.5% 3.5%

Other Salaries/Benefits 3.5% 3.5%

Administrative Rent-Free Unit 3.5% 3.5%

Sub-total Salaries/Benefits

Administration

Advertising and Marketing 3.5% 3.5%

Office Expenses 3.5% 3.5%

Office Rent 3.5% 3.5%

Legal Expense - Property 3.5% 3.5%

Audit Expense 3.5% 3.5%

Bookkeeping/Accounting Services 3.5% 3.5%

Bad Debts 3.5% 3.5%

Miscellaneous 3.5% 3.5%

Sub-total Administration Expenses

Utilities

Electricity 3.5% 3.5%

Water 3.5% 3.5%

Gas 3.5% 3.5%

Sewer 3.5% 3.5%

Sub-total Utilities

Taxes and Licenses

Real Estate Taxes 3.5% 3.5%

Payroll Taxes 3.5% 3.5%

Miscellaneous Taxes, Licenses and Permits 3.5% 3.5%

Sub-total Taxes and Licenses

Insurance

Property and Liability Insurance 3.5% 3.5%

Fidelity Bond Insurance 3.5% 3.5%

Worker's Compensation 3.5% 3.5%

Director's & Officers' Liability Insurance 3.5% 3.5%

Sub-total Insurance

Maintenance & Repair

Payroll 3.5% 3.5%

Supplies 3.5% 3.5%

Contracts 3.5% 3.5%

Garbage and Trash Removal 3.5% 3.5%

Security Payroll/Contract 3.5% 3.5%

HVAC Repairs and Maintenance 3.5% 3.5%

Vehicle and Maintenance Equipment Operation and Repairs 3.5% 3.5%

Miscellaneous Operating and Maintenance Expenses 3.5% 3.5%

Sub-total Maintenance & Repair Expenses

Supportive Services 3.5% 3.5%

Commercial Expenses

TOTAL OPERATING EXPENSES

PUPA (w/o Reserves/GL Base Rent/Bond Fees)

Reserves/Ground Lease Base Rent/Bond Fees

Ground Lease Base Rent

Bond Monitoring Fee

Replacement Reserve Deposit

Operating Reserve Deposit

Other Required Reserve 1 Deposit

Other Required Reserve 2 Deposit

Required Reserve Deposit/s, Commercial

Sub-total Reserves/Ground Lease Base Rent/Bond Fees

TOTAL OPERATING EXPENSES (w/ Reserves/GL Base Rent/ Bond Fees)

PUPA (w/ Reserves/GL Base Rent/Bond Fees)

NET OPERATING INCOME (INCOME minus OP EXPENSES)

DEBT SERVICE/MUST PAY PAYMENTS ("hard debt"/amortized loans)

Hard Debt - First Lender Enter comments re: annual increase, etc.

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender) Enter comments re: annual increase, etc.

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender) Enter comments re: annual increase, etc.

Hard Debt - Fourth Lender Enter comments re: annual increase, etc.

Commercial Hard Debt Service

TOTAL HARD DEBT SERVICE

CASH FLOW (NOI minus DEBT SERVICE)

Commercial Only Cash Flow

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income)

AVAILABLE CASH FLOW

USES OF CASH FLOW BELOW (This row also shows DSCR.) DSCR:

USES THAT PRECEDE MOHCD DEBT SERVICE IN WATERFALL

"Below-the-line" Asset Mgt fee (uncommon in new projects, see policy) 3.5% 3.5% per MOHCD policy

Partnership Management Fee (see policy for limits) 3.5% 3.5% per MOHCD policy

Investor Service Fee (aka "LP Asset Mgt Fee") (see policy for limits) per MOHCD policy no annual increase

Other Payments

Non-amortizing Loan Pmnt - Lender 1 Enter comments re: annual increase, etc.

Non-amortizing Loan Pmnt - Lender 2 Enter comments re: annual increase, etc.

Deferred Developer Fee (Enter amt <= Max Fee from row 131)

TOTAL PAYMENTS PRECEDING MOHCD

RESIDUAL RECEIPTS (CASH FLOW minus PAYMENTS PRECEDING MOHCD)

Does Project have a MOHCD Residual Receipt Obligation? Yes

Will Project Defer Developer Fee? TBD

Residual Receipts split for all years. - Lender/Owner 67% / 33%

Dist. Soft

MOHCD RESIDUAL RECEIPTS DEBT SERVICE Debt Loans

MOHCD Residual Receipts Amount Due 100.00%Allocation per pro rata share of all soft debt

loans, and MOHCD residual receipts policy

Proposed MOHCD Residual Receipts Amount to Loan Repayment

Proposed MOHCD Residual Receipts Amount to Residual Ground

LeaseProposed Total MOHCD Amt Due less Loan

Repayment

NON-MOHCD RESIDUAL RECEIPTS DEBT SERVICEHCD Residual Receipts Amount Due 0.00% No HCD Financing

Lender 4 Residual Receipts Due 0.00%

Lender 5 Residual Receipts Due 0.00%

Total Non-MOHCD Residual Receipts Debt Service

REMAINDER (Should be zero unless there are distributions below)

Owner Distributions/Incentive Management Fee

Other Distributions/Uses

Final Balance (should be zero)

REPLACEMENT RESERVE - RUNNING BALANCE

Replacement Reserve Starting Balance

Replacement Reserve Deposits

Replacement Reserve Withdrawals (ideally tied to CNA)

Replacement Reserve Interest

RR Running Balance

RR Balance/Unit

OPERATING RESERVE - RUNNING BALANCE

Operating Reserve Starting Balance

Operating Reserve Deposits

Operating Reserve Withdrawals

Operating Reserve Interest

OR Running Balance

OR Balance as a % of Prior Yr Op Exps + Debt Service

OTHER REQUIRED RESERVE 1 - RUNNING BALANCE

Other Reserve 1 Starting Balance

Other Reserve 1 Deposits

Other Reserve 1 Withdrawals

Other Reserve 1 Interest

Other Required Reserve 1 Running Balance

OTHER RESERVE 2 - RUNNING BALANCE

Other Reserve 2 Starting Balance

Enter formulas manually per relevant MOH

policy; annual incrementing usually not

appropriate

15 16 17

LOSP non-LOSP Total LOSP non-LOSP Total LOSP non-LOSP Total

- - - - - - - - -

- - - - - -

- - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - - - - -

- - - - - - - - -

- - -

- - - - - -

- - - - - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - - - - -

- - - - - - - - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

- - -

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- - -

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#DIV/0! #DIV/0! #DIV/0!

- - -

- - -

- - -

- - -

15 16 17

Year 16 Year 17 Year 18

11 of 14

MOHCD Proforma - 20 Year Cash Flow

Total # Units:LOSP

Units

Non-LOSP

Units

- 0 0

0.00% 0.00%

INCOME

% annual

inc LOSP

% annual

increase

Comments

(related to annual inc assumptions)

Residential - Tenant Rents 1.0% 2.5%

Residential - Tenant Assistance Payments (Non-LOSP) n/a n/a

Residential - LOSP Tenant Assistance Payments n/a n/a

Commercial Space n/a 2.5%

Residential Parking 2.5% 2.5%

Miscellaneous Rent Income 2.5% 2.5%

Supportive Services Income 2.5% 2.5%

Interest Income - Project Operations 2.5% 2.5%

Laundry and Vending 2.5% 2.5%

Tenant Charges 2.5% 2.5%

Miscellaneous Residential Income 2.5% 2.5%

Other Commercial Income n/a 2.5%

Withdrawal from Capitalized Reserve (deposit to operating account) n/a n/aLink from Reserve Section below, as

applicable

Gross Potential Income

Vacancy Loss - Residential - Tenant Rents n/a n/a

Vacancy Loss - Residential - Tenant Assistance Payments n/a n/aVacancy Loss - Commercial n/a n/a

EFFECTIVE GROSS INCOME

OPERATING EXPENSES

Management

Management Fee 3.5% 3.5%1st Year to be set according to HUD

schedule.

Asset Management Fee 3.5% 3.5% per MOHCD policy

Sub-total Management Expenses

Salaries/Benefits

Office Salaries 3.5% 3.5%

Manager's Salary 3.5% 3.5%

Health Insurance and Other Benefits 3.5% 3.5%

Other Salaries/Benefits 3.5% 3.5%

Administrative Rent-Free Unit 3.5% 3.5%

Sub-total Salaries/Benefits

Administration

Advertising and Marketing 3.5% 3.5%

Office Expenses 3.5% 3.5%

Office Rent 3.5% 3.5%

Legal Expense - Property 3.5% 3.5%

Audit Expense 3.5% 3.5%

Bookkeeping/Accounting Services 3.5% 3.5%

Bad Debts 3.5% 3.5%

Miscellaneous 3.5% 3.5%

Sub-total Administration Expenses

Utilities

Electricity 3.5% 3.5%

Water 3.5% 3.5%

Gas 3.5% 3.5%

Sewer 3.5% 3.5%

Sub-total Utilities

Taxes and Licenses

Real Estate Taxes 3.5% 3.5%

Payroll Taxes 3.5% 3.5%

Miscellaneous Taxes, Licenses and Permits 3.5% 3.5%

Sub-total Taxes and Licenses

Insurance

Property and Liability Insurance 3.5% 3.5%

Fidelity Bond Insurance 3.5% 3.5%

Worker's Compensation 3.5% 3.5%

Director's & Officers' Liability Insurance 3.5% 3.5%

Sub-total Insurance

Maintenance & Repair

Payroll 3.5% 3.5%

Supplies 3.5% 3.5%

Contracts 3.5% 3.5%

Garbage and Trash Removal 3.5% 3.5%

Security Payroll/Contract 3.5% 3.5%

HVAC Repairs and Maintenance 3.5% 3.5%

Vehicle and Maintenance Equipment Operation and Repairs 3.5% 3.5%

Miscellaneous Operating and Maintenance Expenses 3.5% 3.5%

Sub-total Maintenance & Repair Expenses

Supportive Services 3.5% 3.5%

Commercial Expenses

TOTAL OPERATING EXPENSES

PUPA (w/o Reserves/GL Base Rent/Bond Fees)

Reserves/Ground Lease Base Rent/Bond Fees

Ground Lease Base Rent

Bond Monitoring Fee

Replacement Reserve Deposit

Operating Reserve Deposit

Other Required Reserve 1 Deposit

Other Required Reserve 2 Deposit

Required Reserve Deposit/s, Commercial

Sub-total Reserves/Ground Lease Base Rent/Bond Fees

TOTAL OPERATING EXPENSES (w/ Reserves/GL Base Rent/ Bond Fees)

PUPA (w/ Reserves/GL Base Rent/Bond Fees)

NET OPERATING INCOME (INCOME minus OP EXPENSES)

DEBT SERVICE/MUST PAY PAYMENTS ("hard debt"/amortized loans)

Hard Debt - First Lender Enter comments re: annual increase, etc.

Hard Debt - Second Lender (HCD Program 0.42% pymt, or other 2nd Lender) Enter comments re: annual increase, etc.

Hard Debt - Third Lender (Other HCD Program, or other 3rd Lender) Enter comments re: annual increase, etc.

Hard Debt - Fourth Lender Enter comments re: annual increase, etc.

Commercial Hard Debt Service

TOTAL HARD DEBT SERVICE

CASH FLOW (NOI minus DEBT SERVICE)

Commercial Only Cash Flow

Allocation of Commercial Surplus to LOPS/non-LOSP (residual income)

AVAILABLE CASH FLOW

USES OF CASH FLOW BELOW (This row also shows DSCR.) DSCR:

USES THAT PRECEDE MOHCD DEBT SERVICE IN WATERFALL

"Below-the-line" Asset Mgt fee (uncommon in new projects, see policy) 3.5% 3.5% per MOHCD policy

Partnership Management Fee (see policy for limits) 3.5% 3.5% per MOHCD policy

Investor Service Fee (aka "LP Asset Mgt Fee") (see policy for limits) per MOHCD policy no annual increase

Other Payments

Non-amortizing Loan Pmnt - Lender 1 Enter comments re: annual increase, etc.

Non-amortizing Loan Pmnt - Lender 2 Enter comments re: annual increase, etc.

Deferred Developer Fee (Enter amt <= Max Fee from row 131)

TOTAL PAYMENTS PRECEDING MOHCD

RESIDUAL RECEIPTS (CASH FLOW minus PAYMENTS PRECEDING MOHCD)

Does Project have a MOHCD Residual Receipt Obligation? Yes

Will Project Defer Developer Fee? TBD

Residual Receipts split for all years. - Lender/Owner 67% / 33%

Dist. Soft

MOHCD RESIDUAL RECEIPTS DEBT SERVICE Debt Loans

MOHCD Residual Receipts Amount Due 100.00%Allocation per pro rata share of all soft debt

loans, and MOHCD residual receipts policy

Proposed MOHCD Residual Receipts Amount to Loan Repayment

Proposed MOHCD Residual Receipts Amount to Residual Ground

LeaseProposed Total MOHCD Amt Due less Loan

Repayment

NON-MOHCD RESIDUAL RECEIPTS DEBT SERVICEHCD Residual Receipts Amount Due 0.00% No HCD Financing

Lender 4 Residual Receipts Due 0.00%

Lender 5 Residual Receipts Due 0.00%

Total Non-MOHCD Residual Receipts Debt Service

REMAINDER (Should be zero unless there are distributions below)

Owner Distributions/Incentive Management Fee

Other Distributions/Uses

Final Balance (should be zero)

REPLACEMENT RESERVE - RUNNING BALANCE

Replacement Reserve Starting Balance

Replacement Reserve Deposits

Replacement Reserve Withdrawals (ideally tied to CNA)

Replacement Reserve Interest

RR Running Balance

RR Balance/Unit

OPERATING RESERVE - RUNNING BALANCE

Operating Reserve Starting Balance

Operating Reserve Deposits

Operating Reserve Withdrawals

Operating Reserve Interest

OR Running Balance

OR Balance as a % of Prior Yr Op Exps + Debt Service

OTHER REQUIRED RESERVE 1 - RUNNING BALANCE

Other Reserve 1 Starting Balance

Other Reserve 1 Deposits

Other Reserve 1 Withdrawals

Other Reserve 1 Interest

Other Required Reserve 1 Running Balance

OTHER RESERVE 2 - RUNNING BALANCE

Other Reserve 2 Starting Balance

Enter formulas manually per relevant MOH

policy; annual incrementing usually not

appropriate

18 19

LOSP

non-

LOSP Total LOSP

non-

LOSP Total

- - - - - -

- - - -

- - - -

- -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- -

- - - -

- - - - - -

- - - - - -

- - - - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- - - - - -

- -

- - - - - -

- - - - - -

- -

- - - -

- - - - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - -

- - - - - -

- - - - - -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

#DIV/0! #DIV/0!

- -

- -

- -

- -

1918

Year 19 Year 20

13 of 14

MOHCD Proforma - Exhibit A

LOSP FUNDING SCHEDULE

#NUM!

Exhibit A

Calendar Year

Full Year

Funding Amount

# Months

to Fund

Total

Disbursement

for

Calendar Year

Estimated

Disbursement

Date

FY Budgeted

(for Disbursement)

CY-1 #### #NUM! #NUM! #NUM! #NUM! #NUM!

CY-2 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-3 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-4 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-5 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-6 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-7 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-8 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-9 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-10 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-11 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-12 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-13 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-14 #### #NUM! 12 #NUM! #NUM! #NUM!

CY-15 #### #NUM! 12 #NUM! #NUM! #NUM!

#NUM! #### #NUM! #NUM! #NUM! #NUM! #NUM!

Total Contract Amount: #NUM!

Project Address:

Project Start Date:

1 of 1

38

Attachment B

Tier Service Funding Objectives

PSH

Reporting Tier I Tier II Tier III Tier IV Tier V

Monthly Occupancy Occupancy Occupancy Occupancy Occupancy

New Placements New Placements New Placements New Placements

Quarterly

Number of Intakes - New Tenants

Number of Intakes - New Tenants

Number of Intakes and Assessments - New Tenants

Number of Intakes and Assessments - New Tenants

Number of Intakes and Assessments - New Tenants

Outreach to Households Showing Instability

Outreach to Households Showing Instability

Outreach to Households Showing Instability

Outreach to Households Showing Instability

Outreach to Households Showing Instability

Number of Group or Community Activities

Number of Group or Community Activities

Number of Group or Community Activities

Number of Group or Community Activities

Number of Group or Community Activities

Number of Outreach Efforts to New Tenants (3x in 60 days)

Number of Outreach Efforts to New Tenants (3x in 60 days)

Number of Outreach Efforts to New Tenants (3x in 60 days)

Number of Outreach Efforts to New Tenants (3x in 60 days)

Number of New and Updated Goal Plans

Number of New and Updated Goal Plans

Number of New and Updated Goal Plans

Number of Households that Received Direct Services and Number of Direct Service Contacts

Number of Households that Received Direct Services and Number of Direct Service Contacts

Number of Households that Received Direct Services and Number of Direct Service Contacts

Annually Housing Stability Housing Stability Housing Stability Housing Stability Housing Stability

39

Tenant Satisfaction Survey Results

Tenant Satisfaction Survey Results

Tenant Satisfaction Survey Results

Tenant Satisfaction Survey Results

Tenant Satisfaction Survey Results

Program Exits Program Exits Program Exits Program Exits

Number of Households Showing Housing Instability that Remained Stably Housed

Number of Households Showing Housing Instability that Remained Stably Housed

Number of Households Showing Housing Instability that Remained Stably Housed

40

Attachment C

Tenant Screening Criteria Policy – LOSP

The City expects that housing providers will use maximum feasible efforts to ensure that those individuals and families who are referred are accepted for occupancy in a timely fashion. To that end, the City has adopted the following screening criteria for applicants with a criminal record. If a problem arises in the application and screening process that may cause unreasonable delay in screening outcome, the housing provider should immediately notify the referring agency and HSH to assist with an expeditious resolution.

The screening criteria and considerations outlined below encourage providers to “screen in” rather than “screen out” applicants. These requirements are also designed to satisfy the requirements of San Francisco Police Code Article 49, Sections 4901-4920 or the Fair Chance Ordinance. This policy describes a minimum level of leniency; providers are encouraged to adopt less restrictive policies and processes whenever appropriate. For example, providers may opt not to review or consider applicant criminal records at all.

Screening Criteria

Housing providers shall not automatically bar applicants who have a criminal record4 in recognition of the fact that past offenses do not necessarily predict future behavior, and many applicants with a criminal record are unlikely to re-offend.

Housing providers shall not consider: o arrests that did not result in convictions, except for an open arrest warrant; o convictions that have been expunged or dismissed under Cal. Penal Code §

1203.4 or 1203.4a;5 o juvenile adjudications.

Housing providers shall consider: o the individual circumstances of each applicant; and o the relationship between the offense, and

(1) the safety and security of other tenants, staff and/or the property; and

(2) mitigating circumstances such as those listed below. o only those offenses that occurred in the prior 3 years, except in exceptional

situations, which must be documented and justified, such as where the housing provider staff is aware that the applicant engaged in violent criminal activity

4 The policy recognizes that some housing may be subject to mandatory laws that require the exclusion of an applicant based upon certain types of criminal activity. 5 The purpose of the statute is allow a petitioner to request a dismissal of the criminal accusations, a change in

plea or setting aside of a verdict and to seek to have certain criminal records sealed or expunged and a release “from all penalties and disabilities resulting from the offense.”

41

against staff, residents or community members and/or that the applicant intentionally submitted an application with materially false information regarding criminal activity. As necessary, HSH will assess the justification for a longer look-back period and determine whether an exception is warranted. In these exceptional situations, the housing provider may consider offenses that occurred in the prior 5 years.

o mitigating factors, including, but not limited to: (1) the seriousness of the offense; (2) the age and/or circumstances of the applicant at the time of the

offense; (3) evidence of rehabilitation, such as employment, participation in a job

training program, continuing education, participation in a drug or alcohol treatment program, or letters of support from a parole or probation officer, employer, teacher, social worker, medical professional, or community leader;

(4) if the offense is related to acts of domestic violence committed against the applicant;

(5) if the offense was related to a person’s disability.

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Attachment D

LOSP Lease Addendum: Adult

Local Operating Subsidy Program (LOSP) – ADULT Eligibility Requirements and Lease Addendum

Page 1 of 5

Site Name and Address: _________________________________________ Name(s) of Qualifying Household Members: ____________________________________________________________ Background: In addition to the terms of the Housing Provider lease signed by the parties, this addendum sets forth specific requirements that apply to the Local Operating Subsidy Program (LOSP) of the City and County of San Francisco. The tenant herein agrees to these additional terms as a condition of participation in LOSP and as a condition of the tenant’s eligibility to pay a reduced rent for this unit. The tenant’s participation in LOSP may be terminated due to non-compliance, resulting in the tenant being responsible for the full underlying restricted rent for the unit which is the maximum rent allowed to be charged for the unit. If the tenant cannot or will not pay the full amount of the underlying restricted rent, this may lead to unlawful detainer proceedings and eviction. The Local Operating Subsidy Program (LOSP) provides subsidized housing to qualified low-income homeless adults and families with dependent minor children. The subsidy is project-based and cannot be transferred to other properties or to tenants not included on this lease. Site eligibility requirements are also project-based and specific to the unit being offered in the lease. For the LOSP-subsidized housing units, the Department of Homelessness and Supportive Housing (HSH) refers clients who meet HSH and any additional eligibility requirements, if applicable. The Housing Provider operating the site conducts the screening, verifies eligibility and makes the final approval that results in the offer of this unit. You are being offered Unit # _________ ELIGIBILITY: The eligibility requirements related to this unit are:

Homeless History: Meets the HSH Adult Homeless Definition Meets additional eligibility requirements for the site, if applicable

Tenant(s) Initials: __________________

Local Operating Subsidy Program (LOSP) – ADULT Eligibility Requirements and Lease Addendum

Page 2 of 5

ELIGIBILITY: (continued) Income:

Total household income cannot exceed _____% of the current AMI (Area Median Income) at the time of this lease signing based on the household configuration noted below.

Tenant(s) Initials: __________________

Household Configuration

The unit being offered with the lease has: o Minimum occupancy of _____ persons. o Maximum occupancy of _____ persons.

This lease is being offered based on an occupancy of ______ persons. At any given time, at least one adult on the lease must meet the HSH Adult

Homeless Definition in order to remain eligible for the subsidy.

Tenant(s) Initials: __________________ RENT:

Rent shall be calculated at ____% of household gross income. If tenant has no documented and regular income, a minimum of $______.00

per month rent is required. Applicable Not applicable Waived At the time of the signing of the lease and this addendum for this unit, the

current full underlying restricted rent for this unit is $_______ per month. This amount changes over time.

Tenant(s) Initials: __________________ ON-GOING COMPLIANCE: The eligibility for LOSP subsidy related to this unit requires:

The Housing Provider be notified of any adults or minors added to the household within the timeline stated in the lease. The Housing Provider’s screening protocol and approval process must be followed and all applicable certification and lease documents signed.

Tenant(s) Initials: __________________

Local Operating Subsidy Program (LOSP) – ADULT Eligibility Requirements and Lease Addendum

Page 3 of 5

Current tenants must confer with the Housing Provider and the tenant lease before an adult is added to or removed from the unit. The Housing Provider will communicate with HSH accordingly to process the request.

Tenant(s) Initials: __________________ The tenant must report changes in household income to the Housing Provider

within the timeline in the lease agreement. The Housing Provider will adjust the rent amount according to the lease agreement and/or regulatory agreements.

Tenant(s) Initials: __________________

Unit occupancy (household size) remains within the minimum and maximum number of persons required for the unit as noted in the Household Configuration section.

Tenant(s) Initials: __________________

The Housing Provider will recertify the household income and configuration on an annual basis. The Housing Provider may request additional recertification to verify changes in household income or configuration. Compliance with requests for recertification is a requirement for continuing to receive the LOSP subsidy.

Tenant(s) Initials: __________________

Tenant participation in Third Party Rent Payment Services covering all benefits and/or income. All benefits and/or income will be directed to a reputable Third Party Rent Payment Services provider and all rent will be paid directly through this service provider. (Applicable to DAH Program).

Tenant(s) Initials: __________________

Local Operating Subsidy Program (LOSP) – ADULT Eligibility Requirements and Lease Addendum

Page 4 of 5

Tenant participation in maximizing income and securing all benefits for which they qualify. (Applicable to DAH Program)

Tenant(s) Initials: __________________

Tenant, or a health provider on behalf of tenant, requesting prior authorization from support services if the tenant will be away from the unit for more than 30 days and continuing to request authorization every 30 days thereafter, for up to 90 days. Tenant will also maintain unit as primary residence. (Applicable to DAH Program)

Tenant(s) Initials: __________________

SUBSIDY REVOCATION:

I/We understand that the LOSP is not an entitlement program but rather an eligibility-based program and that the terms and conditions above must be met at time of placement and throughout tenancy in order to qualify for the LOSP subsidy. I/We receive the subsidy based solely on meeting and maintaining the eligibility and on-going compliance requirements of the program.

Tenant(s) Initials: __________________

If notified of a potential loss of the subsidy due to ineligibility or noncompliance, I/We agree to communicate with the Housing Provider and onsite services staff by responding to all notifications and requests for additional information within the timelines issued by the Housing Provider.

Tenant(s) Initials: __________________

I/We understand that if the subsidy is terminated, I/we will be responsible for paying the current full underlying restricted rent and that failure to do so may lead to eviction.

Tenant(s) Initials: __________________

Local Operating Subsidy Program (LOSP) – ADULT Eligibility Requirements and Lease Addendum

Page 5 of 5

If the LOSP subsidy is terminated for any reason and I/We are not able to pay the full underlying restricted rent, I/We understand on-site services staff will be available to assist in securing appropriate housing. I/We understand that while there is no guarantee of an alternative housing placement, cooperation with the Housing Provider and on-site services staff is a great way to explore such options.

Tenant(s) Initials: __________________

My/Our signature below signifies my/our understanding and agreement to the terms, eligibility and on-going compliance conditions of the LOSP. All adults on the Housing Provider lease are required to sign this addendum. ____________________________________ ________________________________ Tenant Name (Print) Property Management Name (Print)

_______________________________________ ___________________________________ Tenant Signature Date Property Management Signature Date ____________________________________ Tenant Name (Print) _______________________________________ Tenant Signature Date

43

Attachment E

LOSP Lease Addendum: Family

Local Operating Subsidy Program (LOSP) – FAMILY Eligibility Requirements and Lease Addendum

Page 1 of 5

Site Name and Address: ____________________________________________________________ Name(s) of Tenant(s): _____________________________________________________________ BACKGROUND In addition to the terms of the Housing Provider lease signed by the parties, this addendum sets forth specific requirements that apply to the Local Operating Subsidy Program (LOSP) of the City and County of San Francisco. The tenant herein agrees to these additional terms as a condition of participation in LOSP and as a condition of the tenant’s eligibility to pay a reduced rent for this unit. The tenant’s participation in LOSP may be terminated due to non-compliance, resulting in the tenant being responsible for the full underlying restricted rent for the unit which is the maximum rent allowed to be charged for the unit. If the tenant cannot or will not pay the full amount of the underlying restricted rent, this may lead to unlawful detainer proceedings and eviction. The Local Operating Subsidy Program (LOSP) provides subsidized housing to qualified low-income homeless adults and families with dependent minor children. The subsidy is project-based and cannot be transferred to other properties or to tenants not included on this lease. Site eligibility requirements are also project-based and specific to the unit being offered in the lease. Eligibility for the LOSP subsidy is based on the household members that were listed on the initial move-in certification and subsequent annual recertification(s), even if specific occupants have changed. When a minor reaches 18 years of age, the family continues to be eligible for the LOSP subsidy as long as all other criteria are met. For the LOSP-subsidized housing units, the Department of Homelessness and Supportive Housing (HSH) refers clients who meet HSH and any additional eligibility requirements, if applicable. The Housing Provider operating the site conducts the screening, verifies eligibility and makes the final approval that results in the offer of this unit. You are being offered Unit # _________.

Local Operating Subsidy Program (LOSP) – FAMILY Eligibility Requirements and Lease Addendum

Page 2 of 5

ELIGIBILITY FOR A LOSP FAMILY UNIT

Homeless History:

Meets the HSH Homeless Definition Meets additional eligibility requirements for the site, if applicable

Tenant(s) Initials: __________________

Income:

Total household income cannot exceed ____% of the current AMI (Area Median Income) at the time of this lease signing based on the household configuration noted below.

Tenant(s) Initials: __________________

Household Configuration: The unit being offered with the lease has:

o Minimum occupancy of _____ persons. o Maximum occupancy of _____ persons.

This lease is being offered based on an occupancy of ______ persons. To be eligible, the household configuration must include at least one dependent

minor child under the age of 18 upon lease up who resides in the household at least 50% of the time.

Tenant(s) Initials: __________________

RENT

Rent shall be calculated at 30% of household gross income. If tenant does not have regular income, a minimum of $___.00 per month

rent is required. Applicable Not applicable Waived At the time of the signing of the lease and this addendum for this unit, the

current full underlying restricted rent for this unit is $________ per month. This amount changes over time.

Tenant(s) Initials: __________________ CHILD CUSTODY REQUIREMENTS IN LOSP FAMILY UNITS 1. I/We understand and agree upon signing the Lease Addendum, certification, or

recertification that I/We shall maintain at least 50 percent child custody and child residency in the subsidized unit, as required by LOSP policy.

2. I/We shall report to the Housing Provider any changes in the custody or

residency of our child(ren). Notice must be given within one week of learning of

Local Operating Subsidy Program (LOSP) – FAMILY Eligibility Requirements and Lease Addendum

Page 3 of 5

any changes in custody or residency. Such changes include, but is not limited to, those due to divorce, Family and Children’s Services (FCS) actions, prolonged vacations or visits with relatives, and prospective absence of child(ren) longer than two weeks. Failure to provide proper notice of these changes may result in termination of the LOSP subsidy.

3. The Housing Provider may request that I/We provide proof of child(ren)’s

residency in the event that the Housing Provider staff are unable to confirm the presence of child(ren) on the property for at least two weeks and I/We have not provided an explanation for the absence.

4. I/We shall cooperate in providing adequate proof of child(ren)’s residency to the

Housing Provider within one week of a request for confirmation. If no such proof is provided, the Housing Provider will make a formal written request for current documentation regarding custody of the absent child(ren).

5. I/We shall have one week to respond to said written request. This verification

may include, but is not limited to, official documentation that I/We have physical custody of the child(ren) and/or presentation of the child(ren) at the Housing Provider’s office.

6. If I/We lose legal custody of child(ren), I/We shall authorize the release of

information to the Housing Provider to verify the progress in completing the requirements of any plan to reunify and regain custody of the child(ren).

7. If I/We remain otherwise in compliance with the Lease during this period, I/We

shall have a six month period to demonstrate satisfaction of court or FCS requirements for reunification with the child(ren). I/We shall provide documentation and/or updates of progress toward reunification to the Housing Provider no less than every two weeks. I/We must provide the necessary consent to release of information forms for the appropriate parties to work on the progress for reunification.

8. If I/We fail to regain custody of the child(ren) after the six month period ends,

the Housing Provider will work alongside relevant parties including, FCS, HSH, and/or court personnel to assess the situation and make a decision on ongoing tenancy.

9. If the court denies reunification or I/We decide to no longer actively pursue

custody by not following requirements set forth by FCS and/or court personnel at any time during the six month period, HSH and the Housing Provider will identify an adult housing unit that I/We can transfer to. If I/We choose not to transfer to an adult housing unit or cannot transfer based on unsatisfactory standing with the current tenancy, a 30-day notice of final termination of the LOSP subsidy will be issued. Any decision to terminate a LOSP subsidy must be approved by HSH.

Local Operating Subsidy Program (LOSP) – FAMILY Eligibility Requirements and Lease Addendum

Page 4 of 5

Tenant(s) Initials: __________________ ON-GOING COMPLIANCE

The Housing Provider must be notified of any adults or minors added to the household within the timeline stated in the lease. The Housing Provider’s screening protocol and approval process must be followed and all applicable certification and lease documents signed.

Tenant(s) Initials: __________________

Current tenants must confer with the Housing Provider and the tenant lease before an adult is added to or removed from the unit. The Housing Provider will communicate with HSH accordingly to process the request.

Tenant(s) Initials: __________________

The tenant must report changes in household income to the Housing Provider within the timeline in the lease agreement. Housing Provider will adjust the rent amount according to lease and/or regulatory requirements.

Tenant(s) Initials: __________________

Unit occupancy (household size) must remain within the minimum and maximum number of persons required for the unit as noted in the Household Configuration section.

Tenant(s) Initials: __________________

The Housing Provider will recertify the household income and configuration on an annual basis. The Housing Provider may request additional recertification to verify changes in household income or configuration. Compliance with requests for recertification is a requirement for continuing to receive the LOSP subsidy.

Tenant(s) Initials: __________________ SUBSIDY REVOCATION

I/We understand that the LOSP is not an entitlement program but rather an eligibility-based program, and that the terms and conditions above must be met at time of placement and throughout tenancy in order to qualify for the LOSP subsidy. I/We receive the subsidy based solely on meeting and maintaining the eligibility and on-going compliance requirements of the program.

Local Operating Subsidy Program (LOSP) – FAMILY Eligibility Requirements and Lease Addendum

Page 5 of 5

If notified of a potential loss of the subsidy due to ineligibility or noncompliance, I/We agree to communicate with the Housing Provider and onsite services staff by responding to all notifications and requests for additional information within the timelines issued by the Housing Provider.

Tenant(s) Initials: __________________

I/We understand that if the subsidy is terminated, I/We will be responsible for paying the current full underlying restricted rent and that failure to do so may lead to eviction.

Tenant(s) Initials: __________________

If the LOSP subsidy is terminated for any reason and I/We are not able to pay the full underlying restricted rent, I/We will seek the assistance of the onsite services staff for help in securing appropriate housing. I/We understand that while there is no guarantee of an alternative housing placement, cooperation with the Housing Provider and onsite services staff is a great way to explore such options.

Tenant(s) Initials: __________________

My/Our signature below signifies my/our understanding and agreement to the terms, eligibility and on-going compliance conditions of the LOSP. All adults on the Housing Provider lease are required to sign this addendum.

____________________________________ ________________________________ Tenant Name (Print) Property Management Name (Print) _______________________________________ ___________________________________ Tenant Signature Date Property Management Signature Date _______________________________________ Tenant Name (Print) _______________________________________ Tenant Signature Date