1-RFA 4434 - Multi-Family Rental Unit Development Application - FINAL.pdf

Request for Applications (RFA) for Multi-Family Rental Unit Development

City of Owensboro HOME-ARP Funds

TABLE OF CONTENTS

Page Introduction HOME Investment Partnership Funds Other Regulatory Requirements Submission Instructions Evaluation of Applications Affordability Period Loan Terms Underwriting Standards Distribution and Redistribution of Funds Disclaimer

Separate Files:

2025 Multi-Family Application Checklist

Attachments #1 – Environmental Assessment Acknowledgement #2 – Applicant and Development Team Form #3 – Development Form #4 – Financing Form

#5 – CDBG Target Area

I. INTRODUCTION

The City of Owensboro is seeking to select a development team to utilize HOME Investment Partnerships- American Rescue Plan (“HOME-ARP”) funds for the construction of rental housing to serve HOME-ARP qualifying populations as defined in the U.S. Department of Housing. The City anticipates $856,686.95 in HOME-ARP funds will be available on a competitive award basis for viable projects. Applicants will submit applications and will subsequently be scored and ranked.

The proposed developments shall provide affordable rental housing to a mix of eligible households, including low and very low-income. By submitting the attached application, the Applicant acknowledges their understanding of and agrees to adhere to all Federal, state, and local requirements associated with these funds, including the HOME Investment Partnership Program.

HOME Investment Partnerships (HOME) Funds HOME Investment Partnerships Program funds can be utilized for the development of affordable rental housing through acquisition, new construction, reconstruction, or moderate or substantial rehabilitation of non-luxury housing with suitable amenities. This includes real property acquisition, site improvement, conversion, demolition, and other expenses approved by the City. The housing must be permanent or transitional housing (with leases of no less than one year).

Qualifying Populations. Qualifying populations are defined in the U.S. Department of Housing and Urban Development’s CPD Notice 21-10 as follows:

1. Homeless, as defined in 24 CFR 91.5 Homeless (1), (2), or (3):

(1) An individual or family who lacks a fixed, regular, and adequate nighttime residence, meaning:

(i) An individual or family with a primary nighttime residence that 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;

(ii) An individual or family living in a supervised publicly or privately-operated shelter designated to provide temporary living arrangements (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); or 4

(iii) An individual who is exiting an institution where he or she resided for 90 days or less and who resided in an emergency shelter or place not meant for human habitation immediately before entering that institution;

(2) An individual or family who will imminently lose their primary nighttime residence, provided that:

(i) The primary nighttime residence will be lost within 14 days of the date of application for homeless assistance;

(ii) No subsequent residence has been identified; and

(iii) The individual or family lacks the resources or support networks, e.g., family, friends, faith-based or other social networks needed to obtain other permanent housing;

(3) Unaccompanied youth under 25 years of age, or families with children and youth, who do not otherwise qualify as homeless under this definition, but who:

(i) Are defined as homeless under section 387 of the Runaway and Homeless Youth Act (42 U.S.C. 5732a), section 637 of the Head Start Act (42 U.S.C. 9832), section 41403 https://www.ecfr.gov/cgi-bin/text-idx?SID=79211b6ce7a76fa29ed4acb17212c081&mc=true&node=se24.1.91_15&rgn=div8 of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2), section 330(h) of the Public Health Service Act (42 U.S.C. 254b(h)), section 3 of the Food and Nutrition Act of 2008 (7 U.S.C. 2012), section 17(b) of the Child Nutrition Act of 1966 (42 U.S.C.

1786(b)), or section 725 of the McKinney-Vento Homeless Assistance Act (42 U.S.C.

11434a);

(ii) Have not had a lease, ownership interest, or occupancy agreement in permanent housing at any time during the 60 days immediately preceding the date of application for homeless assistance;

(iii) Have experienced persistent instability as measured by two moves or more during the 60-day period immediately preceding the date of applying for homeless assistance;

and

(iv) Can be expected to continue in such status for an extended period of time because of chronic disabilities, chronic physical health or mental health conditions, substance addiction, histories of domestic violence or childhood abuse (including neglect), the presence of a child or youth with a disability, or two or more barriers to employment, which include the lack of a high school degree or General Education Development (GED), illiteracy, low English proficiency, a history of incarceration or detention for criminal activity, and a history of unstable employment;

2. At risk of Homelessness, as defined in 24 CFR 91.5 At risk of homelessness:

(1) An individual or family who:

(i) Has an annual income below 30 percent of median family income for the area, as determined by HUD;

(ii) Does not have sufficient resources or support networks, e.g., family, friends, faith- based or other social networks, immediately available to prevent them from moving to an emergency shelter or another place described in paragraph (1) of the “Homeless” definition in this section;

and

(iii) Meets one of the following conditions:

(A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance;

(B) Is living in the home of another because of economic hardship;

(C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance;

(D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by federal, State, or local government programs for low-income individuals;

(E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than

1.5 people per room, as defined by the U.S. Census Bureau;

(F) Is exiting a publicly funded institution, or system of care (such as a health- care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or

(G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan;

(2) A child or youth who does not qualify as “homeless” under this section, but qualifies as “homeless” under section 387(3) of the Runaway and Homeless Youth Act (42 U.S.C. 5732a(3)), section 637(11) of the Head Start Act (42 U.S.C. 9832(11)), section 41403(6) of the Violence Against Women Act of 1994 (42 U.S.C. 14043e-2(6)), section 330(h)(5)(A) of the Public Health Service Act (42 U.S.C. 254b(h)(5)(A)), section 3(l) of the Food and Nutrition Act of 2008 (7 U.S.C. 2012(l)), or section 17(b)(15) of the Child Nutrition Act of 1966 (42 U.S.C. 1786(b)(15)); or https://www.ecfr.gov/cgi-bin/text-idx?SID=79211b6ce7a76fa29ed4acb17212c081&mc=true&node=se24.1.91_15&rgn=div8

(3) A child or youth who does not qualify as “homeless” under this section but qualifies as “homeless” under section 725(2) of the McKinney-Vento Homeless Assistance Act (42 6 U.S.C. 11434a(2)), and the parent(s) or guardian(s) of that child or youth if living with her or him.

3. Fleeing, or Attempting to Flee, Domestic Violence, Dating Violence, Sexual Assault, Stalking, or

Human Trafficking, as defined by HUD.

For HOME-ARP, this population includes any individual or family who is fleeing, or is attempting to flee, domestic violence, dating violence, sexual assault, stalking, or human trafficking. This population includes cases where an individual or family reasonably believes that there is a threat of imminent harm from further violence due to dangerous or life-threatening conditions that relate to violence against the individual or a family member, including a child, that has either taken place within the individual’s or family’s primary nighttime residence or has made the individual or family afraid to return or remain within the same dwelling unit. In the case of sexual assault, this also includes cases where an individual reasonably believes there is a threat of imminent harm from further violence if the individual remains within the same dwelling unit that the individual is currently occupying, or the sexual assault occurred on the premises during the 90-day period preceding the date of the request for transfer.

Domestic violence, which is defined in 24 CFR 5.2003 includes felony or misdemeanor crimes of violence committed by:

1) A current or former spouse or intimate partner of the victim (the term “spouse or intimate partner of the victim” includes a person who is or has been in a social relationship of a romantic or intimate nature with the victim, as determined by the length of the relationship, the type of the relationship, and the frequency of interaction between the persons involved in the relationship);

2) A person with whom the victim shares a child in common;

3) A person who is cohabitating with or has cohabitated with the victim as a spouse or intimate partner;

4) A person similarly situated to a spouse of the victim under the domestic or family violence laws of the jurisdiction receiving HOME-ARP funds; or

5) Any other person against an adult or youth victim who is protected from that person's acts under the domestic or family violence laws of the jurisdiction.

Dating violence which is defined in 24 CFR 5.2003 means violence committed by a person:

1) Who is or has been in a social relationship of a romantic or intimate nature with the victim; and

2) Where the existence of such a relationship shall be determined based on a consideration of the following factors:

a. The length of the relationship;

b. The type of relationship; and

c. The frequency of interaction between the persons involved in the relationship.

Sexual assault which is defined in 24 CFR 5.2003 means any nonconsensual sexual act proscribed by Federal, Tribal, or State law, including when the victim lacks capacity to consent.

Stalking which is defined in 24 CFR 5.2003 means engaging in a course of conduct directed at a specific person that would cause a reasonable person to:

1) Fear for the person’s individual safety or the safety of others; or

2) Suffer substantial emotional distress.

Human Trafficking includes both sex and labor trafficking, as outlined in the Trafficking Victims Protection Act of 2000 (TVPA), as amended (22 U.S.C. 7102). These are defined as:

https://www.ecfr.gov/cgi-bin/text-idx?SID=96b973025525632a03648d20e5ec8cd8&mc=true&node=se24.1.5_12003&rgn=div8 https://www.ecfr.gov/cgi-bin/text-idx?SID=96b973025525632a03648d20e5ec8cd8&mc=true&node=se24.1.5_12003&rgn=div8 https://www.ecfr.gov/cgi-bin/text-idx?SID=96b973025525632a03648d20e5ec8cd8&mc=true&node=se24.1.5_12003&rgn=div8 https://www.ecfr.gov/cgi-bin/text-idx?SID=96b973025525632a03648d20e5ec8cd8&mc=true&node=se24.1.5_12003&rgn=div8

1) Sex trafficking means the recruitment, harboring, transportation, provision, obtaining, patronizing, or soliciting of a person for the purpose of a commercial sex act, in which the commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such act has not attained 18 years of age; or

2) Labor trafficking means the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery.

4. Other Populations, where providing supportive services or assistance under section 212(a) of NAHA

(42 U.S.C. 12742(a)) would prevent the family’s homelessness or would serve those with the greatest risk of housing instability. HUD defines these populations as individuals and households who do not qualify under any of the populations above but meet one of the following criteria:

(1) Other Families Requiring Services or Housing Assistance to Prevent Homelessness is defined as households (i.e., individuals and families) who have previously been qualified as “homeless” as defined in 24 CFR 91.5, are currently housed due to temporary or emergency assistance, including financial assistance, services, temporary rental assistance or some type of other assistance to allow the household to be housed, and who need additional housing assistance or supportive services to avoid a return to homelessness.

(2) At Greatest Risk of Housing Instability is defined as household who meets either paragraph

(i) or (ii) below:

(i) has annual income that is less than or equal to 30% of the area median income, as determined by HUD and is experiencing severe cost burden (i.e., is paying more than 50% of monthly household income toward housing costs);

(ii) has annual income that is less than or equal to 50% of the area median income, as determined by HUD, AND meets one of the following conditions from paragraph (iii) of the “At risk of homelessness” definition established at 24 CFR 91.5:

(A) Has moved because of economic reasons two or more times during the 60 days immediately preceding the application for homelessness prevention assistance;

(B) Is living in the home of another because of economic hardship;

(C) Has been notified in writing that their right to occupy their current housing or living situation will be terminated within 21 days after the date of application for assistance;

(D) Lives in a hotel or motel and the cost of the hotel or motel stay is not paid by charitable organizations or by Federal, State, or local government programs for low-income individuals;

(E) Lives in a single-room occupancy or efficiency apartment unit in which there reside more than two persons or lives in a larger housing unit in which there reside more than

1.5 persons reside per room, as defined by the U.S. Census Bureau;

(F) Is exiting a publicly funded institution, or system of care (such as a health- care facility, a mental health facility, foster care or other youth facility, or correction program or institution); or

(G) Otherwise lives in housing that has characteristics associated with instability and an increased risk of homelessness, as identified in the recipient's approved consolidated plan.

Veterans and Families that include a Veteran Family Member that meet the criteria for one of the qualifying populations described above are eligible to receive HOME-ARP assistance.

The HOME Program requires a minimum $1,000 HOME investment per unit and a maximum per-unit subsidy based on current Section 221(d)(3) limits, for elevator-type projects. Projects assisted with HOME funds must https://www.ecfr.gov/cgi-bin/text-idx?SID=79211b6ce7a76fa29ed4acb17212c081&mc=true&node=se24.1.91_15&rgn=div8 https://www.ecfr.gov/cgi-bin/text-idx?SID=79211b6ce7a76fa29ed4acb17212c081&mc=true&node=se24.1.91_15&rgn=div8 also comply with rent limits for the applicable award year. Below are the current 2025 rent limits published by

HUD.

Efficiency 1 BR 2 BR 3 BR 4 BR Low Rent $755 $808 $970 $1120 $1250 High Rent $854 $860 $1128 $1424 $1496

The maximum allowable HOME rents must be reduced if the tenant pays for any utilities, with the exception of telephone service. Utility allowances provide a mechanism for reducing the maximum allowable HOME rents when some or all utilities are paid by the tenant.

Developments subsidized by the HOME Program must comply with the Program Funds Rule and the Project Rule, as established by the U.S. Department of Housing and Urban Development. The Program Funds Rule states that 90% of total households assisted (HOME subsidized units) must have incomes that do not exceed 60% of the Area Median Income (AMI). The Project Rule specifies the occupancy of units in each homeowner/rental project. In projects of five (5) or more HOME-assisted units, at least 20% of the HOME assisted units must be occupied by families who have annual incomes that are 50% or less of the AMI (Low Home Rent Units). Projects with fewer than five (5) HOME-assisted units do not have to restrict any units to Low HOME Rents or limit occupancy to tenants at 50% percent or below of the AMI. These affordable units may either be floating or fixed, with an affordability period determined by the level of subsidy and project type (i.e. New Construction of Rental Housing, 20 Years.)

II. OTHER REGULATORY REQUIREMENTS

Other federal regulations that are applicable when receiving HOME funds include, but are not limited to, minority and women’s business enterprises, Section 3, ADA, labor, lead-based paint, and relocation regulations.

A brief overview of each regulation is provided below.

MINORITY AND WOMEN'S BUSINESS ENTERPRISES: The requirements of Executive Orders 11625, 12432, 12138 and 24 CFR § 85.36(e) apply to grants under this part. Consistent with HUD's responsibilities under these Orders, the Applicant must make efforts to encourage the use of minority and women's business enterprises in connection with funded activities.

SECTION 3: The purpose of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. § 1701u) (Section 3) is to ensure that employment and other economic opportunities generated by HUD financial assistance (greater than $100,000) shall, to the greatest extent feasible, and consistent with existing Federal, State and local laws and regulations, be directed to low and very low-income persons, particularly those who are recipients of government assistance for housing, and to business concerns which provide economic opportunities to low and very low-income persons.

ADA COMPLIANCE: The Applicant shall comply with the applicable provisions of the Americans with Disabilities Act (42 U.S.C. §§ 12101-12213) and assist the City with complying with the implementing regulations at 28 CFR, Part 35. All new construction housing developments receiving HOME subsidies with 5 or more units must design and construct 5% of the dwelling units, or at least one unit, whichever is greater, to be accessible for persons with mobility disabilities. These units must be constructed in accordance with the Uniform Federal Accessibility Standards (UFAS) or a standard that is equivalent or stricter. An additional 2% of the dwelling units, or at least one unit, whichever is greater, must be accessible for persons with hearing or visual disabilities.

For more information on the accessibility requirements for federally assisted new construction, refer to Section 504: Disability Rights in HUD Programs.

LABOR: The Applicant agrees to comply with the requirements of the Secretary of Labor in accordance with the Davis-Bacon Act as amended, the provisions of Contract Work Hours and Safety Standards Act (40 U.S.C.

§ 327 et seq.) and all other applicable Federal, state and local laws and regulations pertaining to labor standards insofar as those acts apply to the performance of this Agreement. The Applicant agrees to comply with the Copeland Anti-Kick Back Act (18 U.S.C. § 874 et seq.) and the implementing regulations of the U.S.

Department of Labor at 29 CFR Part 5. The Applicant shall maintain documentation that demonstrates compliance with hour and wage requirements of this part. Such documentation shall be made available to the City for review upon request. The Applicant agrees that, except with respect to the rehabilitation or construction of residential property containing less than 8 units, all contractors engaged under contracts in excess of $2,000 for construction, renovation or repair work financed in whole or in part with assistance provided under this contract shall comply with Federal requirements adopted by the City pertaining to such contracts and with the applicable requirements of the regulations of the Department of Labor, under 29 CFR Parts 1, 3, 5 and 7 governing the payment of wages and ratio of apprentices and trainees to journey workers, provided that, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Applicant of its obligation, if any, to require payment of the higher wage. The Applicant shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph.

LEAD-BASED PAINT: The Applicant agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR § 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all HOME-assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of lead- based paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning and the advisability and availability of blood lead level screening for children under six. The notice should also point out that if lead-based paint is found on the property, abatement measures may be undertaken. The regulations further require that, depending on the amount of Federal funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be conducted.

UNIFORM RELOCATION ACT: The Uniform Relocation Assistance and Real Property Acquisition Policies Act (the Uniform Act), passed by Congress in 1970, is a federal law that establishes minimum standards for federally funded programs and projects that require the acquisition of real property (real estate) or displace persons from their homes, businesses, or farms. The Uniform Act's protections and assistance apply to the acquisition, rehabilitation, or demolition of real property for federal or federally funded projects. The Applicant agrees to adhere to 49 CFR Part 24, the government-wide regulation that implements the URA, and HUD Handbook 1378, which provides HUD policy and guidance on implementing the URA and 49 CFR Part 24 for HUD funded programs and projects.

III. SUBMISSION INSTRUCTIONS

Applications are due by 5:00PM CST on August 15th, 2025.

Request for Application documentation can be downloaded from the City’s online Bonfire portal at https://owensboro.bonfirehub.com. Once registered, bidders can download all bid/contract documentation.

Applications should be submitted through the online Bonfire Portal at: https://owensboro.bonfirehub.com.

Submissions by other methods will not be accepted. Minimum system requirements: Microsoft Edge, Google Chrome, Safari, or Mozilla Firefox. (Javascript and browser cookies must be enabled.)

Applicants should contact the Bonfire Support team at Support.Bonfire@eunasolutions.com for technical questions. Applicants can also visit Bonfire’s help forum at https://vendorsupport.gobonfire.com/hc/en-us.

Submission materials should be prepared in the file formats listed under Requested Information for this opportunity in the Bonfire Portal. The maximum upload file size is 1000 MB. Documents should not be embedded within uploaded files, as the embedded files will not be accessible to be evaluated.

All submission documentation shall become the property of the City and will not be returned to the bidder, unless an agreement in writing is secured before the bid is submitted to the City.

Please use title sheets to separate Sections I through XIV.

1. Application Checklist: Form is provided.

2. Cover Letter. Please submit a cover letter signed by one of the following: Project Owner/Developer, Board chair, executive director, or highest-level official indicating authorization of agency or organization approval for participation.

3. Title page: Type the name of the Applicant’s agency/firm, address, telephone number, name of contact person, date, and the title of the RFA.

4. Table of Contents: Include a clear identification of the written material by section and by page number.

5. Project Summary: Provide a one to two-page summary of the project that identifies the location, need for project and benefit to the community.

I. Survey. Provide a copy of land survey of site.

II. Preliminary Site Plan and Preliminary Building Elevation and Floor Plans. Provide a copy of the site plan for Development, along with photographs of site and buildings, if applicable.

III. Uniform Relocation Plan. Provide a copy of your Uniform Relocation Plan, in compliance with https://owensboro.bonfirehub.com/ https://owensboro.bonfirehub.com/ mailto:Support.Bonfire@eunasolutions.com https://vendorsupport.gobonfire.com/hc/en-us

Federal rules and regulations as it relates to your project OR provide justification that the Development does qualify under the Uniform Act.

IV. Environmental Reports. Provide copy of completed Phase I Environmental Report and Phase II report if it has been deemed necessary. Applicants must sign the Environmental Acknowledgement Form included in this application as Attachment 1.

V. Partnership Agreements. Provide copies of Partnership Agreements (including Limited

Partnerships). Provide a list of general and limited partner(s) and the officers, directors, members and shareholders of each as of the application deadline. This list must include warrant holders and/or option holders of the proposed Development. A breakdown of all loan disbursements must be provided, specifically what position the City will hold at closing and in partnership agreements.

VI. Compliance with Comprehensive Plan and Zoning. Provide documentation that the

Development is in compliance with the Comprehensive Plan for Owensboro and Daviess County.

Provide documentation that the Development is currently zoned for the proposed use, or a detailed plan on what will be required to obtain proper zoning and a proposed timeline for the process.

VII. Infrastructure Availability. Provide documentation that the site has adequate water and sewer capacity and infrastructure and/or your plan as to how water and sewer capacity and infrastructure will be provided. Provide documentation that the site has adequate transportation capacity and/or your plan as to how transportation capacity will be made adequate.

VIII. Applicant and Development Team. Applicants must complete the Applicant and Development

Team Form included in this application as Attachment 2. Provide resumes for the Development Team, Management Agent, General Contractor, Engineer, Attorney, and any other relevant team member.

IX. Development. Applicants must complete the Development Form included in this application as

Attachment 3.

X. Financing. Applicants must complete the Financing Form included in this application as Attachment 4.

XI. Other Development History and Repayment of Loans. Provide a narrative that addresses the following questions:

1. List all developments the developer has built in Owensboro or other locations.

2. Has the developer or general partner paid back all loans from the City of Owensboro or other cities on schedule and in accordance with their contract? Please provide documentation of such repayments or why repayments are not due at this time.

3. Have all other developments had positive cash flow to provide adequate funding to keep the developments operational and well-maintained?

4. Are adequate reserves available in other developments for replacement costs and upkeep of properties?

5. Has there been any monitoring concerns or findings at other properties?

6. Does the developer make a personal guarantee of the repayment of the loan back to the City of Owensboro?

XII. Affirmative Marketing. Provide an overview of the affirmative marketing plan, which must include: (1) methods for informing the public, owners and potential tenants about fair housing laws and the City of Owensboro’s policies; (2) a description of what owners and/or the property managers will do to affirmatively market housing assisted with HOME Program funds; (3) a description of what owners and/or the property managers will do to inform persons not likely to apply for housing without special outreach; (4) maintenance of records to document actions taken to affirmatively market HOME-assisted units and to assess marketing effectiveness; and (5) a description of how efforts will be assessed and what corrective actions will be taken when requirements are not met.

XIII. Developer Certification. Provide a signed letter from the Developer that certifies all statements in this application are truthful and accurate and that the developer agrees to follow all local, state and federal reporting, rules and/or regulations that may apply based on funding sources.

IV. Evaluation of Applications

An Application Evaluation Committee will review and evaluate all applications submitted in response to this Request for Application (RFA). The Committee will conduct a preliminary evaluation of all applications to ensure they are complete. Failure to comply with any mandatory requirements may disqualify an applicant.

Upon successful completion of the preliminary evaluation, the Application Evaluation Committee will review and rank each application based upon the evaluation criteria as set forth below:

1. Location of project – CDBG Target Area (5 points). Applicant(s) will receive a score of 5 points if the project is located within one of the City’s CDBG Target Area (NRSA) or in another area identified in the 2020 Census as more than 50% low/moderate income persons. Zero (0) points will be awarded if not in a qualified area. (Attachment 5)

2. Demographic Commitment (5 points). Applicant(s) will be awarded 5 points for projects that exclusively serve senior citizens, severely disabled (as defined by the Bureau of Census Current Population Reports), victims of domestic violence, or homeless persons.

3. Construction Features and Amenities (10 points). Applicant(s) will receive scores ranging from 0 to 10 points based upon construction features and amenities. Special areas of focus include energy efficiency (0 to 3 points) and accessible units for persons with disabilities (0 to 3 points).

4. Resident Programs (10 points). Applicant(s) will be awarded scores ranging from 0 to 10 points based upon the number of resident programs that will be made available to tenants.

5. Development Team Capacity and Relevant Experience (20 points). Applicant(s) will receive scores ranging from 0 to 20 points based upon the relative experience of the Development Team (including the applicant, developer, attorney, general contractor, architect/engineer, management agent, and accountant) with similar projects.

6. Prior Performance (10 points). Applicant(s) will be awarded scores ranging from 0 to 10 points for the quality of past performance with regards to multi-family housing development funded with local, state or federal affordable housing dollars. Developers with multiple development projects and a record of good performance will maximize this rating category.

7. Ability to Proceed (10 points). Applicant(s) will be awarded scores ranging from 0 to 10 points for the ability to proceed with the project. Highest points go to projects that already control the site, have compatible zoning and completed environmental reviews, possess confirmed utility capacity, and hold firm financing commitments that cover most of the capital stack. Additional credit is given when design documents and permit applications are in progress or ready for submission, and when the developer, architect, and contractor have a strong record of on-time completions on similar projects. A clear milestone schedule showing construction start within 12 months and completion within the program’s timeframe completes the case for readiness.

8. Non-Profit Partnerships (5 points). Projects without nonprofit partnerships shall receive 0 points for this rating factor. Projects with nonprofit partnerships shall receive a score ranging from 1 to 5 points, depending upon the significance and meaningfulness of the nonprofit partnership. The most significant partnership would occur with equity ownership. Examples of limited partnerships include, but are not limited to, nonprofits providing property management, social services, or marketing.

9. Leveraging of Funds (5 points). Applicants(s) may be awarded points based upon the funds requested

(plus any other City funds already committed) divided by total project cost. Points will be awarded for the proposed percentage of City funds in the project as follows:

a. 5 points = 50% or more of the project is leveraged

b. 4 points = 40-49% or more of the project is leveraged

c. 3 points = 30-39% or more of the project is leveraged

d. 2 points = 20-29% or more of the project is leveraged

e. 1 point = 10-19% or more of the project is leveraged

f. 0 points = Less than 10% of the project is leveraged

10. Project Financial Viability (20 points). Applicant(s) will be awarded scores ranging from 0 to 20 based upon evidence of long-term project viability.

The Community Development Department will make a tentative commitment based upon the criteria outlined above. A final funding commitment from the Community Development Department will occur once an independent third-party underwriter performs an analysis of the approved applications and provides verification to the City that the applications are acceptable.

V. Affordability Period

The City will ensure long term affordability through the use of a Land Use Restriction Agreement for a term of twenty (20) years that will be recorded against the property. If the owner who has been assisted through this program transfers title to the property before the affordability period expires, the assistance provided by the City will be subject to recapture. The City will annually monitor the multi-family rental developments that are assisted with HOME Investment Partnerships funds during the affordability period to ensure that the specified units are affordable, made available to income eligible tenants, and that the property(s) continue to meet minimum housing quality standards.

In addition, all properties receiving HOME funding will be in the form of a deferred loan for a period of twenty

(20) years with 0% interest rate secured by a recorded mortgage on the property, in favor of the City.

VI. Loan Terms

The permanent loan shall not exceed forty (40) years and are non-recourse debt secured by a mortgage, note, and land use restrictive agreement, if applicable. In general, construction loans shall not exceed twenty-four

(24) months. Tax credit bridge loans are amortized in accordance with the scheduled capital contributions of investor equity.

If the loan is deferred payment, it will generally be non-amortizing. However, based on the financing requirements of a particular project, the Community Development Department may charge and accrue interest on deferred payment loans. Deferred payment loans are due and payable in full at the expiration of the mortgage

– typically thirty (30) years. Repayment on deferred payment loans is made from available surplus cash, if any.

In general, repayment will be required on an annual basis as a project is reviewed for regulatory compliance and it is determined through the project financial statements or audits that the project has produced surplus cash.

This repayment will be based on a percent of the annual surplus cash (typically 25- 50%) and will reduce the loan by the amount of accumulated payments resulting from surplus cash. Repayments will be applied first to accrued interest, if any.

VII. Underwriting Standards

The forecasted initial year DCR shall be at a minimum, no less than 1.15. In the case of a project supported by a long-term rent subsidy contract or other extenuating circumstance, the initial year DCR will be adjusted accordingly. A higher DCR may be used in cases of small or special use projects where there is higher than normal risk. In general, the following minimum DCR range will apply for such projects:

Project Size (# of units) Minimum DCR

1-5 1.50 6-10 1.40 11-15 1.30 16-20 1.20 > than 20 1.15

As part of the subsidy layering analysis, the Community Development Department will utilize this DCR table to ensure that a project receives no more capital subsidy than is necessary to make the project financially feasible.

The maximum loan to value ratio shall be 90%, except for projects owned or sponsored by a non-profit or limited equity cooperative for which the maximum LTV shall be 95%. Non-amortizing or deferred payment loans may be excluded from the LTV calculation.

VIII.Distribution and Redistribution of Funds

If the City has committed funds to a project that can no longer proceed, the City reserves the right to redistribute funds to the next highest ranked Applicant.

IX. Disclaimer

The City reserves the right to: 1) accept or reject any or all applications received; 2) waive any non- substantive deficiency or irregularity; 3) negotiate with any qualified developer; 4) award a contract in what it believes to be in the best interest of the City; 5) cancel this request, in part or its entirety, if it is deemed to be in the best interest of the City; 6) reject the application of any developer who has previously failed to perform properly; 7) reject the application of any developer who has failed to complete a contract within the specified timeframe;

and/or 8) reject the application of any developer that is not in a position to fulfill a resulting contractual obligation. This Request for Application (RFA) does not commit the City to award any contract, pay any pre-award expenses, or pay any costs incurred in the preparation of an application.