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

Program Funding & Objectives 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.

Public Comments 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 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?

NHTF Distribution WCDA is designated to administer and allocate the funds for the State of Wyoming. Funds will be allocated the following activities: $ 300,000 - 10% will be used for Administration $2,700,000 - 90% will be used for Rental Housing Activities There will be a Small Rural Project Set-Aside to encourage geographic distribution of the funds.

NHTF Rental Activities Rental Housing New Construction Acquisition and/or rehabilitation Rehabilitation Minimum of $30,000 cost per unit Capital Needs Assessment Conversion Reconstruction Operating expense funds only apply when coupled with a rental project funded with HTF

NHTF Eligible Project Costs Land Acquisition Costs Development Hard Costs Demolition Costs (only as a part of a rehabilitation project) Site Improvements Related soft costs Refinancing Costs

Amount of Subsidy 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 Maximum could be the same as the HOME program Have to be reasonable and based on actual costs of developing non-luxury housing in the area

Maximum per Unit Subsidy Amount of Subsidy Minimum and Maximum per unit subsidy is determined by WCDA annually and is included in the Affordable Housing Allocation Plan Maximum per Unit Subsidy # Bedrooms Per Unit Subsidy $88,000 1 $101,000 2 $122,000 3 $158,000 4 $174,000

Eligible forms of Subsidy 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 (cont.) 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

Additional Considerations 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 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 Other: URA, Affirmative Marketing, Conflict of Interest (Davis Bacon and Match do not apply)

Property Standards 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.

Site and Neighborhood Requirements 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

Eligible Applicants Incorporated Cities and Towns Community Housing Development Organizations (CHDO) - No CHDO set-aside Counties Non-Profit Developers For Profit Developers Public Housing Authorities All projects must be developed pursuant to the jurisdiction’s respective Consolidated Plan

Developer Capacity An assessment of Developer Capacity is required. This includes: Experience and capacity to develop the project Financial Resources sufficient to carry out the project

NHTF Time Frames 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 No funding can be allocated until WCDA signs a contract with HUD regarding any federal funding.

Compliance 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

Allocation Process Applications are accepted typically once a year, however, depending on available funding a second round may be scheduled Typically the application period opens January 1st 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

Wyoming Community Development Authority 155 N Wyoming Community Development Authority 155 N. Beech Street Casper, WY 82601 (307) 265-0603 wyomingcda.com National Housing Trust Fund (NHTF) – 24 CFR Part 93 Wyoming Affordable Housing Allocation Plan (www.wyomingcda.com) Contact Edie Phillips, Federal Programs Officer phillips@wyomingcda.com Lesli Wright, Deputy Executive Director of WCDA wright@wyomingcda.com