1. Multifamily Application Training 2010 Consolidated Request for Proposals 2011 Housing Tax Credits

3. Using GoToWebinar »How to submit questions

5. Agenda Overview Assistant Commissioner of Programs - Patricia Hanson Research Director - John Patterson Funding, Priorities and Application Changes – Diana Lund Program Updates: »LAAND – Carol Dixon »Supportive Housing – Amy Long »Housing Tax Credit – Kasey Kier

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7. Minnesota Housing Assistant Commissioner of Programs Patricia Hanson

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9. Minnesota Housing Research Director John Patterson

10. Community Profiles Objectives: »Identify higher need communities »Identify the type of investment needed Basis: »20 indicators, for example: ▪ Homeownership rate ▪ Percentage of renters who are cost burdened ▪ Job growth »5 categories of need

11. Categories of Need Opportunities for Economic Integration Opportunities for Community Stabilization Opportunities for a Growing Workforce Opportunities for Increasing Emerging Market Homeownership Opportunities for Additional Affordable Rental Housing

12. Community Profile Layout County and large city analyses Sections: »Background »5 Need Categories (Maps) »Special Maps for 2010 Applications »20 Indicators (Maps) »20 Indicators (Data Tables)

13. Special Maps for 2010 Applications Foreclosures – »Highly impacted zip codes »Based on foreclosures, delinquencies, and unemployment Economic Integration – »High income census tracts »Based on Dept. of Revenue data

14. Using Community Profiles Data resource To be improved over time: »Smaller geographies – census tracts rather than counties and cities »Feedback from partners Still provides useful information Combine profile information with local and neighborhood-level data

15. Multifamily Construction Costs Cost containment is a priority Examining costs more closely: »Industry data from RSMeans »Past projects funded by Minnesota Housing »Expertise of agency staff RSMeans Construction Costs: Basic 1 to 3 story apartment - $105K to $110K per unit in Minneapolis (excludes acquisition and soft costs) Minnesota Housing projects have cost 18% more after controlling for several factors

16. Construction Cost Factors Type of work (e.g. new construction vs. rehab) Building type and features Location Size of project Size of units Added costs (e.g. historical preservation, environmental abatement, etc.)

17. Construction Cost Review Minnesota Housing will assess costs If costs are higher than expected, will ask for further justification or a reduction in costs Assessment will include allowances for cost factors

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19. RFP Preferences Foreclosure Remediation Transit Oriented Developments Cost Containment Economic Integration

20. Foreclosure Remediation Multifamily foreclosure criteria: »Acquire and rehabilitate a foreclosed property located in a designated high-impact foreclosure zip code »Acquire and rehabilitate a foreclosed property that is not located in a designated high-impact foreclosure zip code »Acquire and/or rehabilitate a property that is located in a designated high-impact foreclosure zip code

21. Foreclosure Remediation High need zip codes »122 eligible zip codes statewide »Based on each zip code’s: ▪ Foreclosure/REO rate ▪ Delinquency rate ▪ Unemployment rate ▪ Proportion of non-prime, ARMs yet to reset http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009340.aspx

24. Foreclosure Remediation High need areas outside the high-need zip code if: »Target area has a 10% sheriff-sales rate or more »Target area must have a minimum of 200 residential parcels

25. Foreclosure Remediation Application requirements »Target area map with identifying boundaries, including proposed development site(s) »Total sheriff-sales for the target area in 2007, 2008 and 2009 (with a separate figure for each year) »Number of residential parcels in the target area (not the number of residential households) »See guidance on the RFP website

26. Foreclosure Remediation Sheriff sales rate calculation »Total of 2007, 2008 and 2009 sheriff sales in the target area divided by the number of residential parcels in the target area »Partially completed new subdivisions are ineligible to be included in the sheriffs sale calculation

27. Transit Oriented Developments Developments located in the 7 county metro area »Within ½ mile radius from Red Line station »Within ¼-mile radius from Blue Line public transit fixed route »Within ½-mile radius of Expressed Bus station/park and ride Developments located in Greater Minnesota »Located within ½ mile radius from a public transit fixed route stop or station http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009341.aspx

28. Transit Oriented Development - Metro http://www.mnhousing.gov/resources/apply/multifamily/MHFA_009341.aspx

29. Transit Oriented Development Greater MN Provide a map identifying the location of the development within ½ mile radius from a public transit fixed route stop or station Include a copy of the route, span and frequency of the service http://www.dot.state.mn.us/transit/Map/index2.html

30. Cost Containment Measures The agency will be carefully reviewing each proposal for cost containment measures, without compromising the quality of the development.

31. Economic Integration Multifamily »The proposed development provides at least 25% but not greater than 50% of the total units in the development as affordable units. OR »The proposed development provides community economic integration by providing housing located in neighborhood with average incomes 150% or more above HUD’s area median family incomes. http://www.mnhousing.gov/resources/apply/multifamily/MHFA_0093 39.aspx

33. RFP Funding Availability Deferred loan funding approximately $24 million »Preservation ARIF (PARIF) - $7 million »Publicly Owned Housing Program (POHP) - $6.5 million »Ending Long-Term Homelessness Initiative Fund (ELHIF) - $7 million »Flexible Financing for Capital Costs (FFCC) - $3.5 million Agency Wide Funding Pool »Economic Development and Housing Challenge Program (EDHC) Approximately $12 million (Agency-wide)

34. RFP Funding Availability Low and Moderate Income Rental Program (LMIR) - up to $20 million Funding Partners – Approximately $4.4 »Metropolitan Council – Local Housing Incentive Account (LHIA) »Minnesota Department of Employment and Economic Development (MN DEED) - Small Cities Development Program (SCDP) »Greater Minnesota Housing Fund (GMHF) »Department of Human Services – Adult Mental Health Division (DHS-AMHD), Housing with Supports for Adults with Serious Mental Illness (HSASMI) Program Operating Subsidy

35. Application Materials Location http://www.mnhousing.gov http://www.mnhousing.gov

36. Application Information and Requirements

37. Master Application Checklist

39. Application Upload Utility

42. Multifamily Rental Housing Common Application

48. Application Deadline Submittal Deadline »Tuesday, June 15, 2010, 5:00 p.m. ▪ Minnesota Housing 400 Sibley Street, Suite 300 St. Paul, MN 55101

49. Application Submittal Submittal »Send your electronic documents to https://online2.mhfa.state.mn.us/rfp-upload/index.aspx https://online2.mhfa.state.mn.us/rfp-upload/index.aspx »Executed original PLUS 2 copies »For Housing Tax Credits, the Application must be signed by one general partner (and the non-profit partner, if appropriate), officer, director or corporate officer

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51. Land Acquisition for Affordable New Development (LAAND) Initiative of Minnesota Housing, Family Housing Fund and Metropolitan Council See Initiative Description on web for details »Land costs an impediment to producing affordable housing »Acquire sites for future development consistent with community’s future affordable housing goals and strategic growth »Development to occur within 5 years after acquisition

52. LAAND Eligible applicants »Local units of government and/or their housing or development agencies or non-profit organizations. Met Council Funding: »Only communities within the seven-county metropolitan area participating in the Livable Communities Act Local Housing Incentive Account program area eligible to receive Metropolitan Council LAAND loan (or LHIA grant) funds. Affordability targets »20% of units must be affordable to households with incomes: ▪ At or below 60% Area Median Income (AMI) in Metro ▪ At or below 80% AMI in Greater Minnesota

53. LAAND Location Criteria »Consistency with strategic growth concepts in Initiative description ▪ Specific transit ways (2030 Transit way System) ▪ Proximate to bus service, other transit options (see Web for specific transit way information) Funding priorities »Strategic growth location criteria »Development facilitates economic integration »Sites near employment/wage growth centers or with low-wage jobs as a greater share of local employment »Financial or in-kind contributions that improve housing affordability

54. LAAND Complete Single family standard RFP or CRV application and supplement LAAND questions on web Note some application sections do not require completion (**) Questions? »Contact: Carol Dixon at 651-296-0756 or carol.dixon@state.mn.us carol.dixon@state.mn.us

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56. Ending Long Term Homelessness Goal: To end long term homelessness Strategy: Create 4,000 supportive housing opportunities Need: An estimated 4,400 experience long term homelessness, including 800 children »57% report serious mental illness »33% report chemical dependency »35% report symptoms of brain injury »54% report prior incarceration »14% report status as military veterans

57. Ending Long Term Homelessness Results to date: »2,800 housing opportunities funded ▪ 62% scattered site ▪ 38% site based »1,754 households have housing ▪ 41% families w/ children ▪ 39% single men ▪ 20% single women

58. Ending Long Term Homelessness Housing Opportunities Created Under the Business Plan

59. Ending Long Term Homelessness Supportive housing is working »86% of households served maintained housing »Emergency expenditures are reduced »Public funds are used more effectively Success stories

60. Ending Long Term Homelessness Ending LTH agency priority »2009 Wilder Study ▪ 22% increase in homelessness ▪ 27% increase in homeless families w/ children ▪ 39% increase in homeless unaccompanied youth ▪ 39% adults homeless due to eviction, foreclosure, or failure to renew lease (up from 32% in 06) Business Plan recalibration

61. Ending Long Term Homelessness Next Steps: »Contact agency staff for technical assistance »Partner with local service providers »Partner with community stake holders

62. Ending Long Term Homelessness Thank you! »Fantastic results to date »Lessons learned »Partnerships & collaboration »Increased awareness & understanding

63. For More Information – Supportive Housing Contacts: Amy Long, 651-296-0751 amy.long@state.mn.us Ken Doresky, 651-284-3177 Ken.doresky@state.mn.us Susan Haugen, 651-296-9848 susan.haugen@state.mn.us Vicki Farden, 651-296-8125 vicki.farden@state.mn.us Elaine Vollbrecht, 651-296-9953 elaine.vollbrecht@state.mn.us Ji-Young Choi, 651-296-9839 ji-young.choi@state.mn.us 400 Sibley Street, Suite 300 St. Paul, MN 55101 651-296-7608 * 800-657-3769 * TTY 651-297-2361 www.mnhousing.gov

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65. 2011 Housing Tax Credits

66. 2011 Housing Tax Credits Application Timeline Round 1 »Applications Due: June 15, 2010 »Selections Announced: October 28, 2010 Round 2 »Application Due: February 1, 2011 »Announcement Date: April 28, 2011

67. 2011 Suballocators & Joint Powers Suballocators – Apply directly to Suballocating Agency (nonprofits may apply to both the suballocator and to Minnesota Housing. For profit developers may ONLY apply to the suballocator) »City of Minneapolis »City of St. Paul »Dakota County »Washington County Joint Powers – Administered by Minnesota Housing (apply to Minnesota Housing and submit a copy of the entire application to the Joint Powers Suballocator) »City of Duluth »City of Rochester »City of St. Cloud

68. Tax Credit Minimum Requirements Threshold Requirements (Round 1) »Metropolitan Area »Greater Minnesota »Special Populations »Preservation »RD Minimum Set-Asides »20% at 50% »40% at 60% Minimum Points »30 for Competitive Credits »40 for non-competitive Tax Exempt Bonds with HTC

69. 2011 Housing Tax Credits Geographic Distribution of Credit 2011 credit cap: $11,059,049 »$2.10 per capita »5,266,214 population figure 10% is set-aside for qualified nonprofits State divided into two geographic areas »Greater Minnesota Pool »Metropolitan Pool

70. 2011 Geographic Distribution Greater Minnesota: (38%) $3,582,196 »RD/Small Projects (set-aside) $ 200,000 $3,782,196 Metropolitan: (62%) »Minneapolis$1,257,639 »Saint Paul$ 937,367 »Washington County$ 483,802 »Dakota County$ 893,553 »MN Housing Admin. $2,598,588 $6,170,949

71. 2011 Geographic Distribution Nonprofit Set-Aside (10% of annual credit) »Greater Minnesota$ 420,244 »Metropolitan$ 685,660 $ 1,105,904

72. Overview of changes: Minnesota Housing 2011 QAP

73. Overview of 2011 QAP Changes Seven principle changes Six impact scoring criteria No statutory revisions for 2011

74. Local/Philanthropic Contributions Excludes loans from the calculation unless they are deferred with a minimum term that is co-terminus with the HTC declaration at or below the AFR Clarifies that contributions from any part of the ownership entity will be considered GP cash unless from a local gov’t entity or charitable organization pursuant to a funding competition

75. Readiness to Proceed For syndication proceeds to be included »Must be awarded in a previous round »Must provide verification of syndication proceeds Added 4 non-financial readiness items »Land use and zoning approvals »Title work and survey (survey only if located on tribal trust land) »Verification all infrastructure is in place »Draft building permits

76. Preservation of Federally Assisted Points increased from 10 to 20 »Preserves federally assisted low income housing at risk of converting to market rate within 2 years of the application »Applicant agrees to continue renewals of PBA and »Maintain the HTC requirements for 30 years Identity of Interest requirement »Appraisal required post selection

77. Smoke Free Buildings Institute and maintain a written policy prohibiting smoking in all units and common areas »Required for term of HTC declaration »Include procedures for transitioning to smoke-free for existing residents »Consequences determined by owner and incorporated into the written policy Supports mission of sustainable, healthy housing and reduces management costs

78. New RFP and HTC Priorities Transit Oriented Development »¼ or ½ mile of public transit station or stops »Refer to Met Council transit maps Temporary Priority – Foreclosed Properties Community Economic Integration »68 eligible census tracts in the metro area »Points only available in Round 1

79. Application Notes Use 2011 Tax Credit Materials »http://www.mnhousing.gov/housing/tax- credits/allocation/MHFA_009377.aspxhttp://www.mnhousing.gov/housing/tax- credits/allocation/MHFA_009377.aspx Document, document, document »Attach documentation to Self-Scoring Worksheet Declaration/LURA

80. For More HTC Information Contact Kasey Kier 651-284-0078 kasey.kier@state.mn.us Bob Porter 651-297-5142 robert.porter@state.mn.us Karen Hassan 651-284-3180 karen.hassan@state.mn.us Phil Hagelberger 651-297-7219 phillip.hagelberger@state.mn.us 400 Sibley Street, Suite 300 St. Paul, MN 55101 651-296-7608 * 800-657-3769 * TTY 651-297-2361 www.mnhousing.gov

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82. Contacts Northwest Region Phil Hagelberger 651.297.7219 phillip.hagelberger@state.mn.us phillip.hagelberger@state.mn.us Northeast Region Terri Parker 651.297.5141 terri.parker@state.mn.us terri.parker@state.mn.us West Central Region Ted Tulashie 651.297.3119 ted.tulashie@state.mn.us ted.tulashie@state.mn.us Central Region Wendy Bednar 651.297.3540 wendy.bednar@state.mn.us wendy.bednar@state.mn.us Southeast Region Susan Thompson 651.296.9838 susan.thompson@state.mn.us susan.thompson@state.mn.us Southwest Region Phil Hagelberger 651.297.7219 phillip.hagelberger@state.mn.us phillip.hagelberger@state.mn.us

83. Contacts RFP Coordinator Diana Lund 651.296.7991 diana.lund@state.mn.us diana.lund@state.mn.us Housing Tax Credit Lead Kasey Kier 651.284.0078 kasey.kier@state.mn.us kasey.kier@state.mn.us Supportive Housing Lead Amy Long 651.296.0751 amy.long@state.mn.us LAAND Lead Carol Dixon 651.296.0756 carol.dixon@state.mn.us Multifamily Front Desk 651-297-3294 or 1-800-657-3647

84. Questions

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