HOME RHD Application, Compliance and Monitoring

HOME RHD Applications HOME RHD Funding Process Amount Timetable Threshold criteria Scoring criteria Getting started

HOME RHD Applications HOME RHD has funding for low-income rental housing in Wisconsin! Per project HUD  State of Wisconsin  Developers/CHDOs $$$

HOME RHD Applications Funding amount depends on number of factors, such as: Number of HOME units Number bedrooms/unit CMI setaside CHDO/non-CHDO status of applicant

HOME RHD Applications Racine Dane County Green Bay Eau Claire Rock County Consortium Kenosha La Crosse Madison Milwaukee Milwaukee County Consortium Home Consortium (Waukesha, Washington, Jefferson, Ozaukee counties) WI Division of Housing HOME RHD funds all areas of Wisconsin not covered by PJs:

HOME RHD Applications 3 funding rounds: 2 competitive, 1 first-come, first-serve June round: Open to all for- and non-profit, CHDO and HA’s applicants October 15 th round: For CHDO’s, non-profit developers and supportive housing projects Rolling round: For any small, rural project (< 20 units), or supportive housing project (of any size) Funding will be awarded as long as funds last to projects that meet threshold and score at least 30 points

HOME RHD Applications Threshold items U.S. Congress and HUD enacted a series of measures* so that HOME funds only go into projects that have undergone underwriting and due diligence to assure financial sustainability over the long-term. *2012 Appropriations bill and HOME Final Rule 7/2013

HOME RHD Applications Long term financial viability as demonstrated by s/u, 15 year proforma with minimum of 1.05 DCR, income/expense spreadsheet and development budget CHDOs must have valid CHDO certification No debarment of development team entities Demonstration of market demand (market study) Demonstration of housing need WI DFI “good standing” Readiness to proceed: zoning, site control, financing commitments/LOIs (1) 30% CMI HOME unit and 20% of HOME units at 50% CMI (balance at 60%) Threshold items

HOME RHD Applications Scoring items: 100 possible points Energy efficiency and sustainable features: maximum 10 points Preservation of any subsidized property, including at least $20k/HOME unit of rehab: 20 points > 50% visitable HOME units: 10 points Number of 30% HOME units OR Number of HOME units for homeless populations with services OR Number of HOME units for supportive housing/section 811 units (non-homeless): maximum 40 points Green building standards Energy star appliances Resource conservation HOME $/HOME unit: maximum 20 points

HOME RHD Applications We can also provide access to our Applied Population Lab housing software: WHIM WHIM helps you assess the need for specific types of housing in particular areas of Wisconsin We can help walk you through the application process: review your financial projections, make suggestions, etc. Take a look at the HOME RHD Guide, browse through it, then call us. We enjoy talking about developing or acq/rehabbing rental housing – it’s our passion. We want new developers to explore HOME funding!

HOME RHD Applications UW-Madison Applied Population Lab mapping and analysis tool WHIM Contact Wisconsin DOH for software access Unemployment Area housing age Income Poverty Rental and owner-occupied housing costs

WHIM Mapping a variable: Counties

WHIM Mapping a variable: Census tracts

WHIM Mapping other variables

WHIM Mapping variables: Zooming in

WHIM Mapping variables: Zooming in

WHIM Mapping variables: Zooming in

WHIM Mapping variables: Targeted % of CMI

WHIM Mapping variables: Targeted % of CMI

WHIM Mapping variables: Shelters

WHIM Mapping variables: Query tool

WHIM Mapping variables: Query tool

WHIM Mapping variables: Query tool

WHIM Downloads

HOME RHD COMPLIANCE

Project Set-Up, Payment Request, Completion Reports: Used during the construction/rehab phase Inservice Report: due April 21 st each year RHD Data Compliance Report: due December 21 st each year

Regularly check the DOH website to ensure you are using the most current forms! Where to find HOME forms:

Project Set-Up Payment Requests Completion Reports HOME RHD COMPLIANCE DURING CONSTRUCTION/REHAB Set-up is used to identify key aspects of the project such as total anticipated costs and sources of funds, this is completed prior to the first payment request. Payment requests must be accompanied by back- up documentation justifying the expenses. The number of payment requests will be identified in your contract. Completion report is done when the HOME units are fully leased and you may draw your remaining 5%. This reviews final sources of funds and provides us with tenant information.

HOME RHD COMPLIANCE Allows us to monitor the health of your project What is required: An operating budget for the current year and your projected budget for the upcoming year Your audited/reviewed financials for the project, or your entity if the project does not have independent financials Computation of the Debt Coverage Ratio (DCR) Certification that you carry insurance for the project that names DOH as the mortgagee, or an “additional interest” if the funds were provided as a grant or the mortgage has been satisfied Inservice Report Due April 21st

HOME RHD COMPLIANCE Ensures HOME units compliant with HUD rent and income limits Covers period of October 1 – September 31 Lists all tenants who resided in HOME units in this time period. Information collected: Designation of the HOME unit (30% CMI, 50% CMI, 60% CMI) Date of move-in Rent: current and move-in Utility allowance if utilities paid by tenant: current and move-in Rent subsidy amounts and sources (if applicable): current and move-in Tenant income: current and move-in HOME unit rent, income limits: current and move-in HOME RHD Data Compliance Report Due December 21st We are here to trouble shoot and provide solutions

HOME RHD COMPLIANCE Electronic form includes helpful notes and makes calculations easier Compares tenant information with HUD limits Rent limits are based on the county, number of bedrooms and the initial designation of the HOME unit (30%, 50%, 60% or SRO) Income limits are based on the county, household size, and initial designation of the HOME unit (30%, 50% or 60%) Call RHD staff if you are having trouble completing the form

HOME RHD COMPLIANCE Actual % of CMI (The tricky one!) CMI = “County Median Income” HUD prints income limits by state, county, and household size annually Take the HUD listed 50% income limit (listed as “very low income” limit) for your county and the appropriate household size Double that income limit and divide by the household’s income Income 100% CMI = Household % CMI

HOME RHD COMPLIANCE Actual % of CMI (The tricky one!) Step 1: $23,450 * 2 = $46,900 (or 100 % CMI) Step 2: $18,600 / $46,900 = 39.7 % CMI e.g. 2 person household in Bayfield County earns $18,600 per year OK for “Low unit” (<50% CMI) OK for “High unit” (<60% CMI) Too much for “Sub unit” (<30% CMI)

HOME RHD Monitoring

Projects with HOME RHD funding monitored by Division of Housing or WHEDA staff Requirement of funding Projects monitored every three years Physical building inspection Administrative inspection

On-site Monitoring: HOME RHD Monitoring 3 years Project completion

HOME RHD Monitoring Paperwork requests from Division of HousingFor requested HOME units: Leases (current) Tenant income documentation (most recent recertification) Income calculations for tenant qualification (original and most recent recertification) Original application with signed release of information and original income verification

HOME RHD Monitoring Documentation RequestedFor the building: Certified rent roll with designated HOME units specified, CMI designation, actual percentage of CMI, and current rent. Subsidy type for units (LIHTC, Section 8, RD, etc.) with income/rent limit documentation for each - could be part of rent roll or separate. Project LURA with stated HOME units and income restrictions.

HOME RHD Monitoring Paperwork requests from Division of HousingFor the building: Unit inspection records Copy of Tenant selection process with approval/denial/appeal process described Utility allowance calculations, if any, with source of the allowance Marketing efforts including MBE/WBE, Section 3, Fair Housing labeling, etc.

The most you can charge for rent for a HOME unit. Includes the utility allowance HOME RHD Monitoring Basic Rent Roll: Information that should be captured Income for household Section 8 voucher + utility allowance + rent paid by tenant List put out by Housing Authority. Add numbers for all utilities the tenant pays on their own. Amount paid by cash/check to landlord each month.

HOME RHD Monitoring % of CMI Calculation Use Excel or other software to calculate % of CMI for all HOME unit households

On-site Monitoring: Building inspection Building exterior Interior HOME units Common areas HOME RHD Monitoring Remember to give tenants notice of entry! HOME is moving to UPCS inspection standards

Questions? Kate Blood Program ManagerJoanna Balsamo-Lilien HOME RHD Division of Housing Department of Administration PO Box E. Wilson Ave. Madison, WI