2016-2017 QAP UPDATE Indiana Housing Conference August 28, 2015

PRESENTATION OVERVIEW Housing Priorities Set-Aside Categories Threshold Requirements HOME & Development Fund Evaluation Factors Miscellaneous Key Dates Tips & Reminders Questions & Answers

Housing priorities Housing for Vulnerable Populations Enhance Self-Sufficiency in Existing Programs Promote Place-Based Initiatives IHCDA Vision for Indiana An Indiana with a sustainable quality of life for all Hoosiers in the community of their choice. IHCDA Mission To provide housing opportunities, promote self-sufficiency, and strengthen communities. To Accomplish This We Will Promote place-based initiatives that will allow Hoosiers opportunities to improve their quality of life. Create and preserve housing for Indiana's most vulnerable population. Enhance self-sufficiency initiatives in existing programs. Promote a value-driven culture of continuous improvement.

Set-aside categories Elderly – 15% to 10% Preservation – 10% to 15% Housing First Minimum units Agreement among all parties Special threshold considerations General Set-Aside – announced each year (announcement for 2016 after today’s Awards Luncheon) % of Available RHTCs Set Aside Category 15% Qualified Not-for-profit 10% Stellar Community Designation Elderly Large City Small City Rural Preservation Housing First General

Threshold requirements Form C and Evidence of Receipt (Form I) Full Phase I Environmental Assessment – due with initial application Development Site Information – electronic architectural plans only Capital Needs Assessment/Structural Conditions Report – due 30 days prior to submission of initial application Underwriting Guidelines Minimum operating expenses at $3,500 per unit per year Mixed use projects & income Threshold Requirements for Supportive Housing Complete Indiana Supportive Housing Institute MOU with CSH MOU with supportive service providers Identify subsidy sources (Form O for IHCDA)

Threshold requirements – con’t Developer Fee Limits increased Up to $2,500,000 for bond deals Architect Fee – increased from 3% to 4% Minimum Development Standards Vinyl thickness reduced from .046” to .044” Consistent scope of work Universal Design Features – 4 from each column Visitability Mandate Single family homes, duplexes, triplexes, or townhomes

Home & development fund Loan term up to 2 years for construction and up to 30 years for permanent financing Applicants or affiliated entities with open HOME awards must show progress before closing on HOME loan Development Fund 100 year flood plain Interest rate starting at 3% 50 units or more: at least 10 units or 50% of assisted (whichever is greater) to be designated at or below 50% AMI for both income and rents

evaluation factors Score Minimum score increased from 110 to 120 Minimum score for 4%/bond applications determined on a case-by-case basis Universal Design Features – points for exceeding threshold requirements Vacant Structure 2 bonus points for structure affected by disaster Cannot also qualify for infill Infill New Construction 2 bonus points for site affected by disaster Cannot also qualify for vacant structure, preservation of existing affordable housing, and adaptive reuse

Evaluation factors – con’t Promotes Neighborhood Stabilization - Greyfield Primary use was non-residential Engineer or architect assessment of site including measure of paved areas Federally Assisted Revitalization Award HUD designated Promise Zone Blight Elimination Program (BEP) Offsite Improvements Improvements must be outside footprint of the building and outside development parcel Improvements within public right of way must demonstrate approval from local jurisdiction Tax Credit Per Unit & Tax Credit Per Bedroom Energy Efficiency – Air Sealing, High Insulation, Water Conservation

Evaluation factors – con’t Desirable Sites Fresh produce Walk Score Opportunity Index Unemployment rate below the State average County ranked 1-23 on Overall Rankings of Healthy Outcomes Lease Purchase Up to 2 bonus points for larger bedrooms (50% 3 BR or larger; 75% 3 BR or larger) Integrated Supportive Housing No more than 25%, but no less than 7 Participation in the Indiana Supportive Housing Institute Community Participation Technical Correction – Bonus Points

Miscellaneous Fees Change of Ownership RHTC Application Fee: $2,000 HOME & Development Fund: $500 each Change of Ownership Pre 8609 – approval required Post 8609 – notification required Post 8609 & IHCDA Financing – approval required QAP, Forms, Schedules, Appendices Frequently Asked Questions (FAQ) http://www.in.gov/myihcda/rhtc.htm

Key dates Event Deadline Waiver Requests October 2, 2015 CNA/Structural Conditions Reports Local Unit of Government & IHCDA Notification (Form C) 2016 Applications Due November 2, 2015, 5:00 PM ET Announcement of 2016 Tax Credit Awards February 25, 2016 Other Notes: Bond Round – open application round (2016-2017 QAP) Housing First – applications submitted in November 2016 General Set-Aside – announced this afternoon and RED notice to be released

Tips & reminders Threshold Evaluation Factors Other Review Schedule G (attachments in correct tabs?) Form C –certified mail or Form I Supporting documentation dated within the last 6 months LOI’s, affidavits, financing letters – double-check project name and details Accessible units – exact location on site plan and/or floor plan Explain any items that are outside of the underwriting guidelines Selecting the NFP set-aside – requirements remain in place even if funded under a different set-aside Basis Boost – capped at 20% Underwrite at 9% Underwriting requirements when mix of new construction & rehab Evaluation Factors Maps with ¼ mile and ½ mile radius Form C must pass threshold to obtain points from City/Town Tenant Investment Plan – include all required attachments Other

2016-2017 QAP questions & answers Thank you for additional information, please contact: matt rayburn – chief real estate development officer Darin edwards – director of real estate lending alan Rakowski – rental housing tax credit manager