1. Presented by Building a Better Minnesota May 10, 2007

2. 2 Minnesota Housing’s First Webcast Broader Audience Flexibility & Convenience for Viewing Recorded Session No Travel Required

3. 3 Tools at Your Fingertips

4. 4 Request of our Audience New Technology for most of our staff including some of our audience – your patience is appreciated! Audio Problems – Please re-dial (605) 772-3434, organizer access code 154542927 https://www.gotomeeting.com/join/78385 2537/106657891https://www.gotomeeting.com/join/78385 2537/106657891

5. 5 Highlights of Today’s Presentation Minnesota Housing’s Mission Helpful Resource Guides Common Application Background Funding Partner / Collaborating Partner Sources of Funds Available in the 2007 RFP Mandatory Green Construction Criteria Navigating the Web Application Form Changes

6. 6 Highlights Continued Administration of the Federal Housing Tax Credit Program Geographical Distribution of Housing Tax Credits Updates to the QAP Recalibration of Minnesota Housing’s Business Plan to End ‘Long-term Homelessness’ Supportive Housing Application Requirements Application Assembly Advice

7. 7 We are committed to meeting Minnesotans’ needs for decent, safe, affordable homes and stronger communities Minnesota Housing’s Mission

8. 8 End Long-Term Homelessness Increase Minority Homeownership Preserve Strategically the Existing Affordable Housing Stock Provide Housing Choices for Low and Moderate Income Workers Minnesota Housing’s Strategic Goals

9. 9 Helpful Resource Guides Multifamily Consolidated Request for Proposal Guide Housing Tax Credit Program Procedural Manual

10. 10 Multifamily Consolidated Request for Proposal Guide Sections to Remember III Application Instructions IVEligible Housing Types, Projects and Activities VMultifamily Selection Standards and Funding for Capital Funding VIMultifamily Selection Standards for Non-Capital Request

11. 11 RFP Guide Contents (continued) Common Selection Standards » Project Feasibility »Organizational Capacity

12. 12 RFP Guide – Common Funding Priorities Underserved Populations, Linkage, Project Location, Reuse/Efficient Land Use, Leverage,

13. 13 RFP Guide – Common Funding Priorities Long Term Affordability, Economic Integration, Cost Reasonableness, Cost Avoidance/Cost Reduction, Site Suitability and Applicant Capacity

14. 14 Selection Standards and Funding Priorities for Non-Capital Funding Operating Subsidy Request Rental Assistance Request

15. 15 RFP Guide Contents (continued) Underwriting Criteria Per Unit Cost Benchmarks Vacancy Factors Management and Operating Benchmarks Developer Fee Limits

16. 16 RFP Guide Contents (continued) Upcoming Important Dates Application Submission Instructions Application Process »Applications are due June 19th »Awards are made on October 25th Selection to Closing Process

17. 17 Housing Tax Credit Manual Contents Policies and Procedures Federal Program Requirements Development Standards Project Selection and Submission Requirements Allocation Schedule

18. 18

19. 19 Multifamily Consolidated RFP & Common Application Background – Consolidated Multifamily Request for Proposals Background - Minnesota Multifamily Rental Housing Common Application

20. 20 Multifamily Consolidated RFP & Common Application What is a Funding Partner? User of the MN Multifamily Rental Housing Common Application Advertise Funding the Annual Multifamily RFP Make funding recommendations in coordination with Minnesota Housing

21. 21 Multifamily Consolidated RFP & Common Application What is a Collaborating Partner? Common Application User »Require MN Multifamily Rental Housing Common Application »Provide input to Minnesota Housing and Funding partners on funding recommendations Non-Common Application User »Use own form of application »Provide input to Minnesota Housing and Funding partners on funding recommendations

22. 22 Multifamily Consolidated RFP & Common Application What is a Pilot Performance Partner? Dakota County Community Development Agency (2007 EDHC Funds) Kandiyohi/Willmar Housing & Redevelopment Authorities (2007 EDHC Funds) City of Brooklyn Park (EDHC and HTF Funds)

23. 23 Funding Availability Federal Housing Tax Credits from the competitive state allocation pool (HTC), $10.1 million estimated Low and Moderate Income Rental Program (LMIR), tax exempt and taxable bonds, up to $20 million

24. 24 Funding Availability Flexible Financing for Capital Costs (FFCC) for LMIR loans only, up to $3 million Economic Development and Housing Challenge Program (EDHC), $9.5 million

25. 25 Funding Availability Preservation Affordable Rental Investment Program (PARIF) – $4 million Housing Trust Fund Program (HTF) – »Capital Funding, approximately $4 million »Operating Subsidy, $975,000

26. 26 Funding Availability Ending Long-term Homelessness Initiative Fund (ELHIF), $9 million (capital, rental assistance or operating subsidy) Publicly Owned Housing Program (POHP), up to $16.9 million ($1.9 million transitional housing)

27. 27 Funding Availability Local Housing Incentive Account Program (LHIA), made available from the Metropolitan Council, up to $1.5 million Minnesota Department of Employment and Economic Development (DEED) Small Cities Development Program, up to $1 million

28. 28 Funding Availability St. Paul Public Housing Agency (St. Paul PHA) – 17 Project Based Vouchers Metropolitan Housing & Redevelopment Authority (Metro HRA) - 25 Project Based Vouchers

29. 29 Funding Availability Family Housing Fund (FHF), approximately $1 million Greater Minnesota Housing Fund (GMHF), $2.5 million general occupancy and supportive housing Minnesota Green Communities Program (FHF and GMHF) - $300,000

30. 30 Sustainable Housing & Design Criteria Background Sustainable Housing Policy Green Communities Criteria Design Criteria Implementation Evaluation

31. 31 Minnesota Housing Sustainable Housing Policy Minnesota Housing encourages sustainable, healthy housing that optimizes the use of cost effective durable building materials and systems and that minimizes the consumption of natural resources both during construction/rehabilitation and in the long-term maintenance and operation….

32. 32 Minnesota Housing Sustainable Housing Policy (continued) … We encourage optimizing the use of renewable resources and energy, minimizing damage and impact to the environment, and maximizing the use of natural amenities such as (solar, wind, climate, and orientation) of the development site.

33. 33 Sustainable Housing & Design Criteria Green Communities Criteria 1.Integrated Design Process Green Development Plan - A written plan outlining the integrated design approach that demonstrates the involvement of the entire team. Plan must incorporate all mandatory green criteria. Architect or green design specialist will certify that these criteria are included in the construction documents.

34. 34 Sustainable Housing & Design Criteria Green Communities Criteria (continued) 2. Location & Neighborhood Fabric 3. Site Improvements 4. Water Conservation 5. Energy Efficiency 6. Materials Beneficial to Environment 7. Healthy Living Environment 8. Operations and Maintenance

35. 35 Sustainable Housing & Design Criteria Mandatory for all New Construction Exemptions »Housing Tax Credit Only »General Obligation Bond Developments »Stabilization and/or Rehabilitation

36. 36 Sustainable Housing & Design Criteria Implementation & Evaluation Green Communities Criteria Minnesota Overlay Application Form »“Intended Method of Satisfying Criteria, Release and Certification”

37. 37 Sustainable Housing & Design Criteria Implementation & Evaluation Certifications »“ Certification of Intent to Comply” at time of “Initial Application” - Owner and Architect; »“Certification of Contract Document Compliance” at or prior to “Loan Closing” or prior to “End Loan Commitment” - Owner and Architect; and »“Certification of Compliance” at “End of Construction” - Owner, Architect, and Contractor

38. 38 Sustainable Housing & Design Criteria Implementation & Evaluation Utility Release Forms Long Term Building Operations Other Tools to be developed Provide Feedback – You are the laboratory!

39. 39 Sustainable Housing & Design Criteria Minnesota Green Communities – GreenbyDesign Conference May 16-17 th, 2007 http://www.greencommunitiesonline.org/minnesota Multifamily Design/Technical Assistance http://www.mhfa.state.mn.us/managers/Arch_Design Standards.htm

40. 40 Sustainable Housing & Design Criteria Minnesota Housing Staff Architects Han Lee (651)296-9850 Bruce Watson (651)297-5135 Jerry Narlock (651)215-6239

41. 41

42. 42 Web Pages Walk through the Multifamily RFP Web Pages

43. 43 Accessing RFP Web Pages

44. 44 Accessing RFP Web Pages

45. 45 RFP Web Pages

46. 46 RFP Table Of Contents

47. 47 RFP Table of Contents

48. 48 RFP Table of Contents

49. 49 RFP Table of Contents

50. 50 Common Application

51. 51 Qualification Forms

52. 52 Qualification Forms

53. 53 Qualification Forms

54. 54 Common Application

55. 55 Collaborating Partners

56. 56 Funding Partners

57. 57 RFP Checklists

58. 58 RFP Master Checklist

59. 59 RFP Master Checklist

60. 60 RFP Master Checklist

61. 61 RFP Master Checklist

62. 62 RFP Master Checklist

63. 63 APPLICATION Walk through the Multifamily Rental Housing Common Application

64. 64 Section I. Proposal Request

65. 65 Section II. Development Team

66. 66 Section III.B. Building Information

67. 67 Section III.C. Property Description

68. 68 Section IV. B. Annual Operating Expenses

69. 69 Section VI. C. Soft Costs

70. 70 Section VII. Funding Requirements

71. 71 Section IX. D. Applicable Fraction

72. 72 Section IX. I. Tax Credit Syndication

73. 73

74. 74 HTC Allocation in Minnesota 2008 Housing Tax Credits

75. 75 08 Suballocators & Joint Powers Suballocators – Apply directly to Allocating Agency (nonprofits may apply to both Minnesota Housing and the suballocator) City of Minneapolis City of St. Paul Dakota County Joint Powers – Administered by Minnesota Housing (apply to Minnesota Housing & Joint Power Suballocator concurrently) City of Duluth City of St. Cloud City of Rochester Washington County

76. 76 2008 Housing Tax Credits Application Timeline Round 1 Applications Due: June 19, 2007 Selections Announced: October 25, 2007 Round 2 Applications Due: January 31, 2008 Selections Announced: April 24, 2008

77. 77 Tax Credit Minimum Requirements Threshold Requirements (Round 1) »Metropolitan Area »Greater MN »Special Populations »Preservation »RD Minimum Set Asides »20% at 50% »40% at 60% Minimum Points »30 for Competitive Credits »40 for non-competitive Tax Exempt Bonds with HTC.

78. 78 2008 Housing Tax Credits Geographic Distribution of Credit 2008 credit cap: $10,075,846 »$1.95 per capita »5,167,101 population 10% is set-aside for qualified nonprofits State divided into two geographic areas »Greater Minnesota Pool »Metropolitan Pool

79. 79 2008 Geographic Distribution Greater Minnesota: (38%) »Duluth$ 263,894 »St. Cloud$ 144,119 »Rochester$ 206,117 »RD/Small Cities (set-aside) $ 200,000 »MN Housing Admin.$2,631,810 $3,445,940

80. 80 2008 Geographic Distribution Metropolitan: (62%) »Minneapolis$1,145,829 »Saint Paul$ 854,030 »Washington County$ 440,789 »Dakota County$ 814,112 »MN Housing Admin. $2,367,561 $5,622,321

81. 81 2008 Geographic Distribution Nonprofit Set-Aside (10% of annual credit) : »Greater Minnesota$ 382,883 »Metropolitan$ 624,702 $ 1,007,585

82. 82 Overview of 2008 QAP Changes Seven principle changes Five impact scoring criteria No statutory revisions for 2008

83. 83 Deletions of Scoring Priorities Cooperatively Developed Plan »Max 10 point scoring impact Green Design Criteria »Max 2 point scoring impact

84. 84 Revisions of Scoring Priorities Cost Avoidance/Cost Reduction »Regulatory Cost Avoidance/Cost Reduction »Max points reduced from 10 to 6 »Deletion of Innovative Design Single Room Occupancy Housing (SRO) »Delete “before rental assistance”

85. 85 Revisions of Scoring Priorities Local Contributions »Renamed ‘Local/Philanthropic Contributions’ »Delete Historic Tax Credits »Reservation land with long-term low cost leases »Added a contribution floor and a range of points ▪ 20.1% and above = 10 points ▪ 15.1 – 20% = 8 points ▪ 10.1 – 15% = 6 points ▪ 5.1 – 10% = 4 points ▪ 2.1 – 5% = 2 points ▪ 0 – 2% = 0 points

86. 86 Revisions of Scoring Priorities Leverage Previous 0 - 20%, = 10 points 21 - 30% = 8 points 31 - 40% = 6 points 41 - 50% = 4 points 51 – 60% = 2 points 61 and above = 0 points Revised 0 – 5%, = 10 points 5.1 – 10% = 8 points 10.1 – 15% = 6 points 15.1 – 20% = 4 points 20.1 – 30% = 2 points 30.1 & above = 0 points

87. 87 Revisions of Scoring Priorities Permanent Housing for Long-Term Homelessness »Minimum of 5%, no fewer than 4 units »Revised non-bonus point % Previous:5 to 15%, but no fewer than 4 units = 5 points 50% to 100%, but no fewer than 20 units = 10 points Revised:5% to 49.99% but no fewer than 4 units = 5 points 50% to 100%, but no fewer than 20 units = 10 points

88. 88 2008 Self-Scoring Worksheet New format Documentation of Points »Attach to the Self-Scoring Worksheet Extended Duration moved from preference priority to Page 1

89. 89

90. 90 MN Housing & State of MN Strategic Goal – End Long-term Homelessness State’s Business Plan to End Long – Term Homelessness: http://www.mhfa.state.mn.us/multifamily/LTH.htm http://www.mhfa.state.mn.us/multifamily/LTH.htm 2006 Wilder Statewide Homeless Survey: http://www.wilder.org/home.0.html http://www.wilder.org/home.0.html Involves Entire State & Community Effort

91. 91 Statewide Efforts to End Homelessness: Umbrella Term & Initiative Logo Unified Efforts & Goals Positive Social Results

92. 92 Definition of Households Experiencing Long-term Homelessness Individuals, unaccompanied youth, and/or families with children lacking a permanent place to live continuously for: ▪ 1 year or more, or, ▪ 4 times in the last 3 years Periods of institutionalization or incarceration shall be excluded when determining the length of time a household has been homeless.

93. 93 Tracking Progress – Making Progress 2007 Goal – 600 Units

94. 94 Long-term Homelessness Report Card - 3 Years Of Experience LTH Housing Opportunities Funded to Date

95. 95 Long-term Homelessness Report Card - Housing Type

96. 96 Long-term Homelessness Housing Goals – The Next 4 Years 1091 Units to Date 2007 – 600 Units 2008 – 800 Units 2009 – 800 Units 2010 – 800 Units Overall Goal = 4000 Units

97. 97 Supportive Housing Partnerships Connecting Housing Developers with Supportive Housing Service Providers: »http://www.mhfa.state.mn.us/multifamily/ LTH.htmhttp://www.mhfa.state.mn.us/multifamily/ LTH.htm »http://www.mhfa.state.mn.us/multifamily/ MF_Ref_5.htmhttp://www.mhfa.state.mn.us/multifamily/ MF_Ref_5.htm

98. 98 Supportive Housing Application Requirements Supportive Housing Narrative: »Detailed Outline of Target Population/Description of Development’s Plan to offer Social Services »Anticipated Social Service Funding County Support Letter Continuum of Care (COC) Form, if targeting homeless Service Provider, Qualification Form 215A

99. 99 Supportive Housing Requirements, Continued… After Selection: »Memorandum of Understanding (MOU) »Tenant Selection Plan »Management Plan »Verification of Services/Service Budget

100. 100 Supportive Housing Requirements, Continued… At Occupancy: »HMIS (Housing Management Information System for LTH) »MOU should describe entity responsible for HMIS data entry, reports, etc.

101. 101 Permanent Supportive Housing to End Long- Term Homelessness – the Vision & Goal To provide housing and appropriate support service options to those experiencing long- term homelessness so they can be successfully housed over the long-term. Every Unit Counts

102. 102

103. 103 Application Submittal Reminders »The Application materials consist of: ▪ The Minnesota Multifamily Rental Housing Common Application which includes related narratives, forms and submittals; and ▪ Minnesota Housing’s multifamily rental housing supplemental requirements. »Use the current version of the Application from the Minnesota Housing website.

104. 104 Application Submittal »Email the Application/402/HTC1 to mhfa.app@state.mn.us; mhfa.app@state.mn.us »Email the Qualification Forms to mhfa.app@state.mn.us; mhfa.app@state.mn.us »Original Copies delivered to Minnesota Housing

105. 105 Application Submittal The executed original and three (3) photocopies Application form Application fee, (applicable only for housing tax credits and amortized first mortgages) Narratives, forms and submittals including supplemental materials For Housing Tax Credits, the Application must be signed by one general partner (and the non-profit partner, if appropriate), officer, director or corporate officer

106. 106 Conclusion One on One Technical Assistance http://www.mhfa.state.mn.us/multifamily/MF_TAT3.htm Please participate in our survey »It will make training better for you!

107. 107 Conclusion APPLICATION DEADLINE »Tuesday, June 19, 2007 »5:00 p.m. »Minnesota Housing Finance Agency 400 Sibley Street, Suite 300 St. Paul, MN 55101

108. 108 Building a Better Minnesota Thank you for your participation in today’s webcast!