Wyoming Community Development Authority Financing Affordable Housing in Wyoming Wyoming Community Development Authority National Housing Trust Fund (NHTF) Public Hearing August 4, 2016

Wyoming Community Development Authority Financing Affordable Housing in Wyoming Resources have been allocated to the State of Wyoming which allow WCDA to provide funding for:  Increasing and preserving the supply of rental housing for extremely low income (ELI) households with incomes between 0 and 30% of area median income, including homeless families. Program Funding & Objectives

Wyoming Community Development Authority Financing Affordable Housing in Wyoming Public Hearing held on June 9, 2016 to outline the NHTF and open a 30 day comment period. Comments/Questions received include the following:  Do not allow NHTF proceeds to be used for homeownership because tax, insurance, and maintenance costs could cause undue burdens to low income homeowners.  Would rental increases differ from other WCDA programs?  Would increased rental income levels over the 30% qualification mark be handled differently than other WCDA programs?  Would NHTF be administered by WCDA similar to the HOME program? Public Comments

Wyoming Community Development Authority Financing Affordable Housing in Wyoming Comments/Questions continued  Can tax credit, HOME and NHTF proceeds be piggybacked together?  A concern was voiced that the 30% NHTF units will be the hardest to qualify & keep qualified.  Will grants be available to existing ELI homeowners for repairs?  No, funds will not be used for homeowner repairs  Will NHTF compliance be consistent and comparable to other WCDA programs to help managers comply with regulations? Public Comments

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  WCDA is designated to administer and allocate the funds for the State of Wyoming. Funds will be allocated the following activities:  $ 300, % will be used for Administration  $2,700, % will be used for Rental Housing Activities  There will be a Small Rural Project Set-Aside to encourage geographic distribution of the funds. NHTF Distribution

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Rental Housing  New Construction  Acquisition and/or rehabilitation  Rehabilitation  Minimum of $30,000 cost per unit  Capital Needs Assessment  Conversion  Reconstruction NHTF Rental Activities

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Land Acquisition Costs  Development Hard Costs  Demolition Costs (only as a part of a rehabilitation project)  Site Improvements  Related soft costs  Refinancing Costs NHTF Eligible Project Costs

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  The value or purchase price of the property purchased is restricted  A market assessment is required to determine need and market demand for projects  Underwriting of the project is required  Rehabilitation  Capital Needs Assessment performed by an unrelated third party  Review of owner’s management practices  Uniform Relocation Act does apply Amount of Subsidy

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Minimum and Maximum per unit subsidy is determined by WCDA annually and is included in the Affordable Housing Allocation Plan Maximum per Unit Subsidy Amount of Subsidy # Bedroom s Per Unit Subsidy 0$88,000 1$101,000 2$122,000 3$158,000 4$174,000

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Interest-bearing loans  Non-interest bearing loans  Interest subsidies that leverage other monies  Deferred payment loans  Forgivable loans  Alternative forms must be approved by HUD Eligible forms of Subsidy

Wyoming Community Development Authority Financing Affordable Housing in Wyoming When combining NHTF funds with HOME funds, deferred and/or forgivable loans may be considered. Please contact WCDA for consideration prior to finalizing your application. Except in the first year after project completion, no further NHTF funds can be used during the affordability period of the project Eligible forms of Subsidy (cont.)

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Rents are strictly controlled  Tenants must meet income requirements  100% of the NHTF funds must assist extremely low income households with annual gross incomes at or below 30% of area median income (AMI)  Both rent and income restrictions are long term (minimum of 30 years)  Single or Multiple Sites  Public or Private ownership Additional Considerations

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Property Standards  Environmental Review  Fair Housing Laws Apply  Employment and Contracting  Davis-Bacon requirements do not apply  Site and Neighborhood Standards  Lead-based paint  Other cross-cutting regulations Additional Considerations

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Housing must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances at the time of completion.  In the absence of local codes the project must meet the International Residential Code or International Building Code  NHTF is not currently subject to 24CFR Part 58 but HUD is required to comply with the National Environmental Protection Act, so they are working on guidance. Property Standards

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Must be developed in full compliance with:  Civil Rights Act of 1964  Fair Housing Act  HUD regulations that promote greater choice of housing opportunities  Site  Projects will be evaluated to insure that the site is in a suitable location and meets HUD’s site and neighborhood standards Site and Neighborhood Requirements

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Incorporated Cities and Towns  Community Housing Development Organizations (CHDO) - No CHDO set-aside  Counties  Non-Profit Developers  For Profit Developers  Public Housing Authorities Eligible Applicants

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  An assessment of Developer Capacity is required. This includes:  Experience and capacity to develop the project  Financial Resources sufficient to carry out the project Developer Capacity

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Specific timelines to commit and spend funds  24 months to enter into written agreements with Owner/Developer to reserve NHTF funds  24 months to commit funds into HUD’s NHTF system  5 years to actually spend the funds NHTF Time Frames

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Minimum 30 year Affordability Period  All beneficiaries must be income qualified  Rents must be no more than the 30% HUD maximum (updated annually)  Rental households must be re-certified annually  All Fair Housing Laws apply  On-site inspection will be done per HUD requirements  Ongoing Financial Over-sight Compliance

Wyoming Community Development Authority Financing Affordable Housing in Wyoming  Applications are accepted typically once a year, however, depending on available funding a second round may be scheduled  Typically the application period opens January 1 st with a deadline for submission of the last working day in January  Applications and the Affordable Housing Allocation Plan will be available on WCDA website  Projects are evaluated based on scoring criteria outlined in the Allocation Plan with a minimum score required for funding Allocation Process

Wyoming Community Development Authority Financing Affordable Housing in Wyoming National Housing Trust Fund (NHTF) – 24 CFR Part 93 Wyoming Affordable Housing Allocation Plan ( Contact Edie Phillips, Federal Programs Officer Lesli Wright, Deputy Executive Director of WCDA Wyoming Community Development Authority 155 N. Beech Street Casper, WY (307) wyomingcda.com