Application Review Process Initial Approvals Feasibility assessment – preliminary review done by production staff Site review – has TDHCA funded other projects near this site that would constitute undue competition or market impact? Project Design – does the design reflect the goals of the agency and the project HOME compliance – does application reflect probable compliance with all regs?
Underwriting and Funding Award Once initial reviews are completed, application is forwarded to Real Estate Analysis Unit to determine subsidy Costs compared to cost database Budgets reviewed for completeness Underwriting attempts to reconcile two conflicting goals: –Provide as little subsidy as possible –Assure the feasibility of the project
Contract Processing Read and sign contract [For CHDO operating funds only, expenditures may begin.] Immediately address Relocation notice requirements Engage in Environmental and Site and Neighborhood reviews Understand LURA implications Participate in loan closing
Pre-construction At this point pre-construction and acquisition draws only, until.... Plan review and corrections if necessary Contractor Eligibility approval Lead paint inspections Labor Stds Officer appointment and wage rate preparation Preconstruction conference Notice to proceed
During and After Construction Progress inspections Accessibility clearance Be prepared!
Miscellaneous Information http://www.hud.gov/offices/cpd/affordableh ousing/programs/home/index.cfm Environmental Notice CPD 01-11 504 and Fair Housing Notice CPD 00-09 extended by 03-13 firstname.lastname@example.org
Tools for Developers http://www.enterprisefoundation.org/resour ces/ERD/default.asphttp://www.enterprisefoundation.org/resour ces/ERD/default.asp LISC Advanced HOME training – ICF Housing Development for Nonprofits by Ben Hecht
Underwriting Issues Time delay between funding and completion Cost of compliance Assure contingencies and reserves are appropriate –Construction –Replacement –Operating/rent-up –Developer fee –Debt coverage ratio Insurance, utilities, utility allowances Rent increases lag inflation in expenses