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2011 DCA CHIP Applicants’ Workshop Community HOME Investment Program (CHIP) 2011 Applicants’ Workshop.

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Presentation on theme: "2011 DCA CHIP Applicants’ Workshop Community HOME Investment Program (CHIP) 2011 Applicants’ Workshop."— Presentation transcript:

1 2011 DCA CHIP Applicants’ Workshop Community HOME Investment Program (CHIP) 2011 Applicants’ Workshop

2 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Eligible CHIP Activities Home Buyer Down Payment Assistance Down Payment, Closing Cost, Pre-Paid Items & Principal Reduction Homeowner Rehabilitation Rehabilitation & Reconstruction of Owner- Occupied Housing

3 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Ineligible Activities Project Reserve Accounts Tenant & Project Based Rental Assistance Match for other federal programs, except McKinney Act funds Operations or modernization of public housing Pre-payment of low income mortgages under 24 CFR Part 248 Double-dipping

4 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Ineligible Activities (continued) Reimbursement of State Recipient Owned Property For property used for non-CHIP purpose For property in its inventory Combination funding with activities funded under Georgia Dream Second Mortgage or Single-Family Development Project

5 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Ineligible Activities (continued) New Construction of Rental Housing Lease Purchase New Construction or Rehabilitation for Sale to Households for Purpose of Homeowner-ship

6 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Eligibility ▪ Local Governments (State Recipient) Local governments not designated by HUD as Participating Jurisdictions (PJ’s) under the HOME program ▪ Non Profit Organizations (Sub-recipient) ▪ Public Housing Authorities (Sub-recipient) All entities must meet established eligibility criteria.

7 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Ineligible HOME PJ’s Albany, Atlanta, Macon, Savannah Roswell, Marietta, Canton Athens/Clarke County Consolidated Government Augusta/Richmond County Consolidated Government Columbus/Muscogee County Consolidated Government Cherokee, Clayton, Cobb, DeKalb, Fulton, and Gwinnett Counties

8 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Eligible Local Government Applicants Must have administered directly or entered into a contract with an Administrator who has successfully closed out one CHIP or CDBG grant in which Homeowner Rehabilitation or Down Payment Assistance was an activity. Any past Applicant with a grant older than 3 years (received in the 2006 or prior Grant Year) on June 30, 2010 and with unexpended funds (both administrative and project funds) is ineligible.

9 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Eligible Non-Profits Entities & Public Housing Authorities - DPA ▪ All nonprofit organization must submit a copy of the 501 (c)(3) or 501(c)(4) exemption determination from the Internal Revenue Service behind the CHIP-1 Form

10 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Eligible Non-Profits Entities & Public Housing Authorities - DPA Must either: ▪ Have administered directly or entered into a contract with an Experienced Administrator for Down Payment Assistance Activities. The consulting contract must have provisions to train the staff of the non-profit or public housing authority on the administration of the CHIP funded activities. OR

11 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Eligible Non-Profits Entities & Public Housing Authorities - DPA Must ▪ Have 3 years experience administering a DPA program and have provided DPA to at least 50% of the number of home buyer proposed in Application.

12 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Eligible Non-Profits Entities & Public Housing Authorities – H/O Rehab Must either: ▪ Have completed since April 1, 2006, the new construction or rehabilitation of at least 50% of the number of units proposed under the Application. Or

13 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Eligible Non-Profits Entities & Public Housing Authorities – H/O Rehab Or ▪ Have entered into a contract with an Experienced Administrator for Homeowner Rehabilitation Activities. Consulting contract must have provisions to train the staff of the non-profit or public housing authority on the administration of the CHIP funded activities.

14 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Experience Requirements for Administrators – DPA Administrator must have successfully closed out one CHIP grant in which Down Payment Assistance was an activity. OR Have experience on staff of at least one individual who has at least 3 years direct work experience at a state or local PJ or a Entitlement community and who will be the primary lead contact on the grant. OR …..

15 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Experience Requirements for Administrators – DPA OR….. Have entered into a contract with an Administrator who has successfully closed out one CHIP grant in which DPA was an activity. ▪ The consulting contract must have provisions to train the inexperienced Administrator.

16 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Experience Requirements for Administrators – H/O Rehabilitation Must have successfully closed out one CHIP or CDBG grant in which Homeowner Rehabilitation was an activity. OR Have experience on staff of at least one individual who has at least 3 years direct work experience at a state or local PJ or a Entitlement community and who will be the primary lead contact on the grant. OR …..

17 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Experience Requirements for Administrators – H/O Rehabilitation OR….. Have entered into a contract with an Administrator who has successfully closed out one CHIP or CDBG grant in which Homeowner Rehabilitation was an activity. ▪ The consulting contract must have provisions to train the inexperienced Administrator.

18 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Period of Affordability Begins on the date that the project is marked as completed in HUD’s Integrated Disbursement and Information System (IDIS) Its length depends on the amount of CHIP investment in the property The amount of CHIP investment consists of all CHIP funds invested in a unit, including Project Delivery Fees

19 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Period of Affordability CHIP Investment Per UnitLength of Affordability Period Less than $15,0006 Years $15,000 –$40,00011 Years More than $40,00016 Years

20 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Eligible Property Types All properties must be a one unit single family dwelling (attached or detached) designed for residential use, condominiums, or planned unit developments approved by Fannie Mae, Freddie Mac, or the Mortgage Insurer, townhomes, and modular homes that are located in an area consistent with such use and intended for owner- occupancy Modular Housing is eligible if the home bears the “DCA insignia” and meets the standards of the State of Georgia’s Industrialized Building Program

21 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Eligible Property Types – (continued) Manufactured Housing is not eligible Properties constructed prior to 1978 may not be purchased using CHIP-funded assistance unless a visual assessment is conducted and no lead is found

22 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Subsidy Amount Each Applicant may propose a total assistance amount to be provided to the borrower of between $6,500 and $14,999 This amount must include the eligible Project Delivery Fee

23 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Subsidy Amount – continued All Down Payment Assistance Activities must be made available in one of the two forms: ▪ As a single flat total dollar amount provided to every home buyer ▪ As a flat dollar amount provided to every home buyer with a house hold income w/in a specified tier based on the AMI Percentage for the county. Will be proposed in Application to DCA

24 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Subsidy Form 0% deferred payment loan ▪ For the portion used for down payment, closing costs, pre-paid items, & principal reduction ▪ Payable to GHFA only when the home is sold, refinanced, or no longer used for their principal residence ▪ Term will equal the Period of Affordability ▪ During Period of Affordability, the amount subject to recapture will be determined based on the Recapture Requirements for a Down Payment Assistance Activity ▪ After Period of Affordability, loan will be considered satisfied

25 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Subsidy Form Grant: ▪ All funds made available for project delivery costs of the activity ▪ Amount will not be included in the calculation of the recapture amount

26 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Property Value Purchase Price limited to: ▪ Atlanta MSA: $250,000 ▪ All Counties Outside the Atlanta MSA: $200,000

27 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: First Mortgage Requirements Must be either (1) a 30-year fixed rate loan or (2) a 32- or 33-year fixed rate USDA loan Must be originated by a lender located within the county in which the program is operated or within a geographically contiguous county ▪ If no such lender is available, the first mortgage must be originated by a Georgia Dream Homeownership Program Participating Lender Interest rate on the First Mortgage may not exceed the current 60-day price for Fannie Mae’s 30-year fixed rate mortgage by more than 200 basis points ▪ Posted on DCA’s Web Site

28 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: First Mortgage Fees Origination fee of no more than 2.00% of the Georgia Dream First Mortgage Loan amount, if the Georgia Dream First Mortgage is used. FHA 203(k) fees to the extent allowed by FHA The total of the Origination Fee and the discount points charged by the First Mortgage lender may not exceed more than 2.00% of first mortgage loan amount Customary lender fees for application processing and underwriting may not exceed the aggregate of $ and may not be based on the size of the loan

29 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Closing Costs Whether paid by the property seller or the mortgagor, may not exceed the aggregate of the actual amounts expended for the following third party costs: ▪ title examination; ▪ title insurance; ▪ attorney’s fees; ▪ credit reports; ▪ termite reports; ▪ tax service fees ▪ flood certificate fees; ▪ surveys; ▪ photographs; ▪ appraiser’s fees; ▪ filing and recording fees; ▪ transfer tax and intangible taxes; ▪ mortgage insurance; ▪ Georgia Residential Mortgage Licensing per-loan fee (GRMA) in the amount of $6.50 ▪ express mail and courier fees paid to company other than Lender ▪ application, processing or underwriting fees, only if paid to an independent third party; and ▪ Adverse Market Delivery Charge of 0.25% and My Community Mortgage Loan Level Price Adjustment of %

30 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: General Requirements All DPA activities must be offered to the home buyer as a Deferred Payment Second Mortgage Loan. As such, the loan must not require any regular monthly payments of the home buyer The Applicant may not pay any application, processing, underwriting, or other similar fees attributable to the CHIP Financed Down Payment Assistance

31 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: General Requirements - continued The only fees which may be collected with the Second Mortgage are: ▪ Recording fees ▪ Intangible Tax ▪ Georgia Residential Mortgage Act (GRMA) fee in the amount of $6.50 Must require a minimum contribution of $500 by the home buyer All households must complete home buyer education or individualized housing counseling

32 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Escrow Fee May require a home buyer household to pay a nominal escrow ▪ May not exceed $50.00 ▪ Must be identified as part of the program design submitted as part of the application ▪ Must be applied toward the home buyer’s required contribution at closing If the first mortgage does not close Must be returned to the home buyer

33 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Project Delivery Fees The total Project Delivery Fee will be made available as a flat fee of $1,500 per home buyer assisted Project Delivery Fees will be disbursed based on submission of invoices or other documentation evidencing the costs incurred Project Delivery Fees will not be disbursed until after the home buyer has closed on the loan to purchase the home

34 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ DPA: Commitment & Expenditure Deadline All project funds must be committed and expended within twenty-four (24) months of the date of the State Recipient or Sub-recipients agreement with GHFA At DCA’s sole and absolute discretion, failure to meet this requirement may result in DCA’s recapture of funds or in barring the State Recipient or Sub-recipient from participation in future funding rounds

35 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Eligible Property Types Must be occupied by an income eligible homeowner and be the owner’s principal residence. The eligible property types are: ▪ Traditional single family housing (Stick-built or Modular) that is owned in fee simple. (This housing may contain one to four dwelling units.); ▪ A condominium unit (Stick-built or Modular);

36 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Eligible Property Types - continued ▪ A cooperative unit or unit in a mutual housing project; and, ▪ Manufactured Housing that is (1) on land owned by the homeowner or having a lease in the name of the homeowner extending beyond the required Period of Affordability and (2) on a permanent foundation.

37 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Subsidy Amount Stick-built & Modular Housing: ▪ Must be between $1,000 - $48,500 Includes lead and project delivery costs Manufactured Housing: ▪ Must be between $1,000 - $7,750 Includes project delivery costs

38 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Subsidy Form 0% Deferred Payment Loan to the Home Owner: ▪ All construction hard costs, except those associated with lead based paint issues: ▪ Payable only when the home is sold, refinanced, or no longer used for their principal residence ▪ Term will equal the Period of Affordability ▪ Forgiven in equal amounts annually over the Period of Affordability ▪ Payable to GHFA

39 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Subsidy Form In the event of the death of a homeowner(s) during the stated period of affordability, DCA will permit a State Recipient or Sub-recipient to allow within its stated program design for transfer of the property to an eligible low and moderate income household that is an immediate family member of the original homeowner. An “immediate family member” is defined as a spouse, parent, brother or sister, or child of that person, or an individual to whom that person stands in loco parentis. The State Recipient or Sub-recipient must provide procedures within its program design to qualify the immediate family member as an eligible household. All documentation must be submitted to DCA and retained in the files of the State Recipient or Sub-recipient.

40 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Subsidy Form Grant to the Homeowner: ▪ All costs associated with the identification, mitigation, abatement or clearance of lead- based paint ▪ All funds made available for project delivery costs of the activity

41 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Property Value After Construction Appraised Value ▪ Atlanta MSA: $250,000 ▪ All Counties Outside the Atlanta MSA: $200,000

42 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: General Property Improvements Improvements outside the scope of bringing a unit up to the state and local standards are generally not permitted unless the purpose of the improvement is to increase the energy efficiency or handicapped accessibility of the unit. The costs of weatherization and handicapped accessibility improvements may not exceed $15,000 or more than 50% of the total cost of the rehabilitation work.

43 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Cost Exceptions The State Recipient or Sub-Recipient may increase the amount of assistance provided to any Homeowner Rehabilitation Activity by up to 20% above the original project cost without seeking approval of DCA for the increased costs. Any increases in project cost above 20% of the original project cost must be approved by DCA prior to initiating any work associated with the cost amendment.

44 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Owner Contribution Local program design for all Homeowner Rehabilitation Activities must not require any contribution for eligible project costs from an eligible homeowner with an income equal to or less than 50% of the Statewide Non-Metropolitan Area Median Income as adjusted for household size

45 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Owner Contribution Household Size Income Limit Below Which No Owner Contribution Can Be Required 1$16,205 2$18,520 3$20,835 4$23,150 5$25,465 6$27,780 7$30,095 8+$32,410

46 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Reconstruction All reconstruction activities must meet all of the following visibility requirements of OCGA ▪ One No Step Entry through 36 inch door ▪ On first floor: Each interior door is at least a standard 32 inch door, unless the door provides access only to a closet of less than 15 square feet in area Each hallway has a width of at least 36 inches and is level, with ramped or beveled changes at each door threshold Each bathroom wall is reinforced for potential installation of grab bars Each electrical panel or breaker box, light switch, or thermostat is not higher than 48 inches above the floor Each electrical plug or other receptacle is at least 15 inches above the floor ▪ The main breaker box is located inside the building on the first floor

47 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Project Delivery Fees The following eligible Project-Related Soft Costs may only be charged to the activity as a Project Delivery Fee: ▪ Processing of applications from the homeowner ▪ Appraisals required by HOME program regulations ▪ Preparation of work write-ups and work specifications ▪ Lead based paint inspections, risk assessments and clearance testing ▪ Project underwriting ▪ Construction inspections ▪ Project document preparation ▪ Architectural, engineering or related professional services required to prepared plans, drawings or specifications of a project ▪ Fees for recordation and filing of legal documents, building permits, attorneys, private appraisals, and independent cost estimates ▪ Project-specific environmental review ▪ Costs associated with informing a homeowner about relocation rights or benefits

48 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Project Delivery Fees For pre-1978 stick-built homes or Modular Housing, the total Project Delivery Fee may not exceed the lesser of 7% of the hard costs of the rehabilitation (including those costs associated with lead), or $4,000. Non-lead related costs are limited to $2,500 of this amount. For stick-built housing or Modular Housing constructed in 1978 or later years, the Project Delivery Fee may not exceed $2,500. For all Manufactured Housing, the Project Delivery Fee will be a flat amount of $750.

49 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Project Delivery Fees All Project Delivery Fees will be disbursed based on submission of invoices or other documentation evidencing the costs incurred Project Delivery Fees will not be disbursed until the home buyer has closed the deferred payment loan for the CHIP funded assistance

50 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ H/O Rehab: Commitment & Expenditure Deadline All project funds must be committed within 24 months of the date of the State Recipient or Sub-recipients agreement with GHFA All funds must be expended within 30 months of the date of the State Recipient or Sub-recipients agreement with GHFA At DCA’s sole and absolute discretion, failure to meet this requirement may result in DCA’s recapture of funds or in barring the State Recipient or Sub-recipient from participation in future funding rounds

51 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ All Activities: Application Fee Charged to Home Buyer or Homeowner An application fee may not be charged by any State Recipient or Sub-recipient to a prospective participant associated with any CHIP-financed Homeowner Rehabilitation or Down Payment Assistance activity

52 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ All Activities: Administrative Fee DCA will permit an administrative fee to cover eligible costs of administering the program, including: ▪ Providing citizens with information about the CHIP funded program, including outreach activities ▪ Preparing a budget and schedule ▪ Preparing reports and other documents related to program performance ▪ Office space and utility costs ▪ Purchasing equipment, insurance and office supplies ▪ Compliance monitoring ▪ Resolving audit and monitoring findings

53 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ All Activities: Administrative Fee DCA will permit an administrative fee equal to 2% of the total funds awarded for project costs, including Project Delivery Fees Administrative fees will not be advanced until the final draw submitted for a Homeowner Rehabilitation or Down Payment Assistance Activity Administrative Fees will be disbursed by multiplying the applicable administrative fee percentage (2%) by the amount of funds requested to be drawn for eligible project costs, including Project Delivery Fees

54 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ All Activities: Award Adjustment ▪ Entities that receive an Award Adjustment for project-related funds will also receive a corresponding adjustment for administrative funds

55 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Application Requirements Application Fee of $250 Public Notification ▪ Local Governments: Must provide a resolution of the municipal or county government detailing the proposed program activities. No formal public hearing is required.

56 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Application Requirements Application Fee of $250 Public Notification ▪ Non-Profit and Public Housing Authority Applicants Proposing Activities in a Single Jurisdiction: Must submit a copy of a letter sent to the chief elected officer (and copied to the city/county administrator, if applicable) of the jurisdiction in which the activity will be implemented that details the proposed program activities, No formal public hearing is required. ▪ Non-Profit and Public Housing Authority Applicants Proposing Activities in Multiple Jurisdictions: Must submit a copy of a letter sent to the chief elected officer (and copied to the city/county administrator if applicable) of each city and county in which the activity is proposed. The letter must detail the proposed program activities. No formal public hearing is required.

57 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Application Requirements ▪ Public Housing Authorities All public housing authorities submitting an application to administer a CHIP-funded program must submit the CHIP PHA Source of Funds Certification letter as part of their application. The CHIP PHA Source of Funds Certification must be included behind the CHIP-1 Form. This requirement applies only to a local public housing authority applying as the applicant for CHIP funds. Nonprofit subsidiaries of a PHA that will be the applicant for CIP funds must also complete the CHIP PHA Source of Funds Certification.

58 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination Total Points ▪ Project Design – 50 points ▪ Program Need – 10 points ▪ Program Locational Characteristics – 16 points ▪ Match Committed within Application – 7 points ▪ Past Performance of Applicants – 6 points ▪ Activity Proposed – 3 points ▪ Program Type Specific Design Elements – 8 points

59 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination - Scoring Program Design ▪ Description ▪ Evidence of Long-term Commitment to Providing Affordable Housing ▪ Evidence of Committed Partnerships ▪ Non-CHIP Resources Brought to Program Design ▪ Application Intake Process Design ▪ Marketing Strategy ▪ Financing Techniques ▪ Program Administration ▪ Evidence of Readiness to Proceed ▪ Evidence of Demand ▪ Evidence of Cost Controls in Program Design

60 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination - Scoring Program Need ▪Based on the percentage of all persons in all census tracts to be served who are below the poverty line ▪DCA has provided data in your Administrative Manual

61 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination - Scoring Program Locational Characteristics: ▪ Community of Opportunity ▪ Georgia Initiative for Community Housing ▪ Federally Declared Disaster Area ▪ 100% of units to be completed are located within A Main Street or Better HomeTown designated community An established Historic District DCA certified Economic Opportunity Zone or locally approved Urban Redevelopment Area. Close proximity to prior local government CDBG funded or DCA funded housing or infrastructure/public facility investment

62 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination - Scoring Match Committed within Application ▪ The Applicant has secured a firm local commitment of a permanent contribution of match to be provided toward the costs proposed ▪ Match may take many forms; however, in no case may match be provided from the household assisted.

63 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination - Scoring Past Performance of Applicants ▪ Applicant may receive points by meeting either one of two criteria: 1.Applicant received at least one CHIP grant funded in the 2006, 2007, or 2008 CHIP application rounds and at least the following percentage of eligible project funds for every award received has been expended by the applicant for eligible projects: –2006 – 100% –2007 – 70.0% –2008 – 40.0% –Note Administrative funds will not be included in this calculation

64 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination – Scoring (continued) 2.The Applicant has an existing contract with an entity to administer the program and the contracted entity is currently administering CHIP funded programs in other communities where the following percentage of the eligible CHIP project funds allocated to all communities has been expended for eligible projects: –2006 – 100% –2007 – 70.0% –2008 – 40.0% –Note Administrative funds will not be included in this calculation.

65 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination – Scoring (continued) Activity Proposed ▪ Programs that propose that 100% of all activities will be Homeowner Rehabilitation will receive the full allocation of points in this category

66 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination – Scoring (continued) Program Type Specific Design Elements ▪ Down Payment Assistance Firm commitment by a Georgia Dream Participating Lender to partner with the Applicant Program Design includes Post-Purchase home buyer education of no less than 1 year Serve city or county that received NSP funds Set-aside financing for at least 1 household at income of 60% of AMI or less

67 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination – Scoring (continued) Program Type Specific Design Elements ▪ Homeowner Rehabilitation Program design sets aside at least 50% of the units to be assisted for units that are owned by households with income at 50% of AMI or less Program design gives preference to elderly households Program incorporates the use of energy audits in the assessment of work to be completed Program design requires completion of visibility improvements to the extent compatible with the rehabilitation work to be completed

68 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination - Scoring Program Type Specific Design Elements ▪ Multi-Activity Will be scored on both sets of factors and will receive the point total for the highest scored area.

69 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination - General All successful Applicants that that receive points within any of the following categories must adhere to that commitment throughout the program’s implementation ▪ Program Locational Characteristics ▪ Match Committed within Application ▪ Activity Proposed ▪ Program Type Specific Design Elements

70 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Funding Determination - General The points received by each Applicant on the rating factors will be totaled and the total scores ranked accordingly from highest to lowest. CHIP awards will be based on this final ranking to the extent funds are available. In case of ties, the applications will be ranked based on the differentiation of points received in the following categories by order of priority: ▪ Total Program Need ▪ Program Design ▪ Match Committed within Application

71 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Procurement Procedures Applies to private consultants, engineers, architects Does not apply to Regional commissions/non-profits Must follow the Common Rule (24 CFR Part 85)

72 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Procurement Procedures Publicize the RFP Allow 30 days for responses Send letter with RFP to at least 7 known providers Negotiate with at least 2 respondents Evaluate proposals and document Consult with counsel Gain full council/commission approval Sole source approval if only one response

73 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Developing and Request for Proposals (RFP) ▪ Indicate level of importance of evaluation factors Capacity of organization Current workload of applicant Applicant’s previous CDBG or CHIP housing experience Qualifications of key personnel Level of services provided Mobility/proximity to project Cost to perform services Local government’s experience with applicant

74 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Elements of a Successful Application Public/Private Partnerships ▪Tell DCA who they are and the type of partner ▪Include their commitment letters with terms and conditions

75 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Elements of a Successful Application Long-term Commitment to Affordable Housing ▪ Community’s recent program history ▪ Housing types and number of units/dollars ▪ Future commitment – strategic plans ▪ Previous applications, even if not awarded ▪ Community staff for housing ▪ Local PHA or Non-profit Administrators ▪ For-profit administrators ▪ If administered by consultant, what is community’s involvement

76 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Elements of a Successful Applications – Program Design Detailed description of overall program Program Administration Role of each entity in the program Responsible party for reports, financial accounting, application procedures, day-to-day operations

77 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Program Design Description of ▪ targeted population to be served ▪ geographic area ▪ funding assistance ▪ any required owner contribution ▪ requirements for Approval/Denial ▪ Marketing Strategy ▪ application in-take ▪ limits of Maximum Purchase Price

78 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Program Design (cont.) ▪ nominal escrow fee ▪ Community Partners ▪ Records Maintenance ▪ policies and steps to comply with: lead-based paint URA Minimum Property Standards If proposing down payment assistance, may give proof of standard affordable housing on market for sale

79 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Program Design (cont.) ▪ Pre-screening/pre-application ▪ Full application ▪ 1 st come, 1 st served ▪ Client application documentation and verification ▪ Financial assistance with bank or other loan ▪ Waiting lists ▪ Development of new waiting lists ▪ Mandatory homeownership counseling

80 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Program Design (cont.) Financing Technique ▪ Maximum amount of CHIP by activity ▪ Minimum required other or leveraged funds by activity ▪A finance plan for each activity is required

81 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Program Design (cont.) Program Policies (to extent known) ▪ Describe the community’s required program policies ▪ Include DCA and HOME requirements

82 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Program Design (cont.) Contractor solicitations Work write-ups Negotiation or bidding Bid packages Pre-bid conference Contractor qualifications Contracts Inspections, draws, project completions Lead based paint requirements Construction Management

83 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Cost Control and Reasonableness Describe maximum CHIP and other funds contributed if required by local design Tell DCA total cost including CHIP and other funds Describe the costs for lead hazard reduction separately Were preliminary cost estimates conducted? (If so, indicate this in the application.) What is basis of total project cost by activity?

84 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Cost Control and Reasonableness (cont.) Need details to assure proposed outcomes Need specific information to assure costs are reasonable for each activity: ▪Number of units ▪Maximum CHIP ▪Minimum Required Other Funds ▪Total Dollars ▪PDC/unit (regular) ▪PDC/unit (lead)

85 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Cost Control and Reasonableness (cont.) Itemize lead hazard reduction cost separately Define minimum property standards for each activity What are your preliminary cost estimates based on? ▪ Based on previous program averages ▪ Existing per square foot costs in market place ▪ Verified, standard, affordable homes for sale

86 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Resource Commitment Tell DCA types of funding proposed other funds Show DCA the level of control you have over committed resources Propose appropriate, reasonable PDC’s for each housing activity Get dollar commitments for only what is needed

87 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Program Marketing/Demand What is the basic marketing strategy? Have all program applicants been pre-approved? Present a well-defined and/or proven marketing strategy Fair and open to all qualified applicants Document that proposed activity is needed and appropriate for community Existing waiting lists Proof of houses in standard condition on market at affordable price range Get details and documentation from real estate community

88 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Lead Based Paint Requirements DCA recognizes HUD lead requirements are costly DCA does not expect homeowners to pay for lead with their funds or other funds DCA has provided for specific project delivery fees for lead For budgeting purposes, estimate Total cost of regular rehabilitation without lead ▪Apply your community’s finance plan to these costs ▪Estimate separately the cost of lead ▪Provide a total cost with lead

89 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Application Submission Send original and 2 copies Photographs (Optional)

90 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Mailing Address Mail applications to: CHIP Program Manager Office of Special Housing Initiatives Georgia Department of Community Affairs 60 Executive Park South, N.E. Atlanta, Georgia

91 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Application Schedule Don’t forget your Application Fee Payable to GHFA Application Due: July 1, 2010 Funding Selections Announced by September 30, 2010

92 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Thank You! CHIP Contacts: ▪ Carmen Chubb, Assistant Commissioner for Housing, ▪ Don Watt, Director, Office of Special Housing Initiatives, ▪ Doug Scott, Nonprofit & Special Programs Manager, ▪ Michelle Lewis, CHIP Program Manager, ▪ Kay Garrison, Program Consultant,

93 Page /CHIP Applicants’ WorkshopHow to Apply for CHIP $$ Questions?


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