National Housing Trust Fund Allocation Plan Input Meeting Brittney Daise  07/13/2016

DCA Presenter Brittney Daise Housing Data & Research Specialist Direct

Overview of Webinar  Background  Consolidated Plan  Annual Action Plan  National Housing Trust Fund Allocation Plan  Questions

Background

National Housing Trust Fund  Established under Title I of the Housing and Economic Recovery Act of 2008  Production or preservation of affordable housing  Acquisition, new construction, reconstruction, and/or rehabilitation of non-luxury housing  In 2014 FHFA directed Fannie Mae and Freddie Mac to begin setting aside and allocating funds  HUD published Interim Rule (FR-5246-I-03) in 2015FR-5246-I-03

National Housing Trust Fund  Affordable housing for ELI and VLI households  Extremely Low Income (<30% of AMI)  Very Low Income (30-50% of AMI)  ELI is 100% focus until funding exceeds $1 billion  Very similar to the HOME program, except:  80% of the funds for production of rental housing  30-year period of affordability for rental  Year 1: $3,314,612 million in Georgia

Overview of DCA’s NHTF Work  Governor designated Georgia Housing and Finance Authority to administer the NHTF in Georgiadesignated Georgia Housing and Finance Authority  Analysis of Impediments and ELI Research  HUD Guidance and NLIHC Recommendations  Public Input Process  Webinar, Stakeholder Meetings, Conference Calls  Draft Allocation Plan and Annual Action Plan Hearing

Formula Allocations  NHTF funds are not appropriated  From percentage of Fannie Mae and Freddie Mac new business  Funds are not made available to HUD until 60 days after the end of their fiscal year  HUD will publish formula allocations in the Federal Register each year

Consolidated Plan

 NHTF must be included in the affordable housing section of the strategic plan included in the consolidated plan  DCA will amend the affordable housing section of the strategic plan to include:  Specific objectives & proposed accomplishments for NHTF measured over specific period of time  The number of ELI families provided w/ affordable housing from NHTF over a specific period of time

Annual Action Plan

 Grantees must include NHTF in annual action plan or amend plan to include NHTF in:  Executive summary (91.320(b))  Available resources (91.320(c))  Activities / method of distribution (91.320(d))

Annual Action Plan  Grantees must include NHTF in annual action plan or amend plan to include NHTF in:  Outcome measures (91.320(e))  Geographic distribution (91.320(f))  Affordable housing goals (91.320(g))

Annual Action Plan  Grantees must include NHTF in annual action plan or amend plan to include NHTF in:  Homeless & special needs activities (91.320(h))  Barriers to affordable housing (91.320(i))  Other actions (91.320(j))

National Housing Trust Fund Allocation Plan

NHTF Allocation Plan  Developed annually by DCA and submitted to HUD  Submitted with Annual Action Plan  Contains NHTF application requirements and selection criteria  Distribution of funds  Recipient and project selection criteria  Eligible activities to address needs

 HTF funds will be awarded on a competitive basis to applications that address:  The criteria outlined in the annual allocation plan,  The relevant NOFA, and  The priority housing needs as identified in the State’s Consolidated Plan and Annual Action Plan NHTF Allocation Plan

 HTF funds will be provided outside of the Low Income Housing Tax Credit round through a compliance-based grant  If there are an insufficient number of eligible applicants through the NOFA, then the funds would be utilized in the subsequent Housing Credit funding round. Low interest loans similar to DCA HOME funds. NHTF Allocation Plan

 Distribution of Funds  DCA will retain 10% of the NHTF annual allocation for allowable administrative and planning costs  DCA will retain up to one-third for operating cost assistance or funding operating cost reserves  The balance of the grant will provide capital funding for new construction or rehabilitation of NHTF units NHTF Allocation Plan

 Eligible Recipients  For-profit entities,  Qualified non-profit entities and,  public entities.  Maximum Per-Unit Development Subsidy Limits  DCA will use HOME maximum per-unit subsidy limits, but retains the right to increase the limit as is necessary and reasonable.

NHTF Allocation Plan  Application requirements & selection criteria for NHTF funds  Required funding priorities (91.30(k)(5)(i): Geographic diversity Applicant capacity Project based rental assistance Duration of affordability period Priority housing needs of the State Leveraging

NHTF Allocation Plan  Allocation plan requirements  Description of eligible activities (93.200) NHTF Funds can be used for acquisition, rehabilitation, or new construction of affordable rental housing  Certification of compliance with NHTF requirements Housing units assisted with NHTF funds must comply with all HTF requirements.

NHTF Allocation Plan  Eligible Activities and Requirements  Acquisition  Site improvements and development hard costs  Related soft costs  Demolition  Finalizing costs  Relocation costs  Operating costs of NHTF-assisted rental units

Operating Costs of NHTF assisted units  Operating costs assistance  Costs for insurance,  Utilities,  Real property taxes and,  maintenance and scheduled payments to a reserve for replacement of major systems of an NHTF assisted unit.

 Operating cost assistance reserve  May be funded by the grantee for the NHTF- assisted units if determined in its underwriting that the reserve is necessary for the project’s financial feasibility Operating Costs of NHTF assisted units

NHTF Allocation Plan  Allocation plan requirements  Description of eligibility requirements for recipients  Performance goals and benchmarks (91.315(b)(2))

NHTF Allocation Plan  Allocation plan requirements  Rehabilitation Standards DCA’s rehabilitation standards will apply to NHTF assisted developments.  Set Limitation on beneficiaries or preferences

Questions? Brittney Daise Housing Data & Research Specialist Direct