2. Developers Workshop Agenda Welcome & Introductions Draft 2017 QAP
Questions
Scott

3. 2017 QAP

4. Disclaimers Not covering every topic
Focusing on significant changes and what you need to know before submitting application
Applicants are responsible for knowing rules
If questions are not covered, ask today or follow up with staff
We will be taking questions during the presentation
– If you have a question, please raise your hand and Tara or Suma will bring a microphone

5. QAP Status First draft released July 27
Public Hearing was held September 7
2 comments were made during the Hearing
Second draft was released October 4
Anticipating final approval later this month
Application available early December

6. QAP Changes National Housing Trust Fund Site Scoring Criteria
Credits per Unit Average
Workforce Housing Loan Program
New Tie Breakers
Underwriting Changes

7. National Housing Trust Fund
Is another source of RPP
Only available in High income counties
Project must commit to at least 25% of units at or below 30% of AMI
$2,952,212 available for 2017 (roughly 4 projects)
Agency can adjust awards to insure all money has been allocated

8. Site Scoring
Distances were shortened and point differentials between distances were lessened to encourage sites with less than perfect scores.
The ability exists to double or triple-count an establishment.
For example: Walmart Supercenter or Super Target counting as Grocery, Shopping and Pharmacy or Harris Teeter counting as Grocery and Pharmacy.

9. Site Scoring Increased points for Secondary Amenities
Requires at least 4 Secondary Amenities to max out points
Added Public School and Senior Center
Added Retail: strip shopping center with a minimum of 4 operating establishments which can be stores of any type

10. Site Scoring The drivable route must be shown in map format
Separate map showing route for each amenity
A photo of each amenity must be provided

11. Example Map

12. Amenity Photo

13. Site Scoring
Site Bonus Points will be award to best overall site(s) in a county
Points will be awarded by NCHFA during site scoring review and added to the final site score
Bonus points will not be awarded in all counties

14. Credits per Unit Average
Points will be awarded based on a projects credits per unit request as it relates to the average credits per unit requested for a given region
Change for 2017 will be to reward projects within 5% and 10% of the average rather than only rewarding those below the average
All full application projects in a region will be used to calculate the average, including those ineligible for award
Chris

15. Change in Number of Awards
46 awards in 2016 when rewarding projects for using the least amount of credits per unit
Had 2016 awarded projects taken 100% of the credits available to each project, result would have been 12 less awards
Had 2016 awarded projects taken 90% of the credits available to each project, result would have been 9 less awards
With the credits per unit change for 2017 there will be a noticeable drop in the number of awards
Chris

16. Workforce Housing Loan Program
$20 million appropriation for 2017
All counties are eligible for WHLP
We have $7.5 million more in 2017 than in 2016; this change will help insure we are able to allocate all of the funds
Maximum loan is the lesser of calculated amount or statutory maximum; any amount can be requested up to the maximum loan amount
Requesting WHLP may result in an application being ineligible due to inadequate funds

17. New Tie Breakers
First tie breaker – Census tract with lowest percentage of families below the poverty rate
Appendix H
Second tie breaker – lowest average income targeting
100% of units at 60% = 60% average income targeting
50% of units at 60%, 50% of units at 40% = 50% average income targeting
50% of units at 60%, 50% of units at market (100%) = 80% average income targeting
Chris

18. Underwriting Changes
Any project requesting RPP funds must use Low HOME rents for 20% of the total units spread proportionally through all bedroom types
Rationale: the project needs to be structured in such a way that it works should it receive HOME funds. Low HOME rents must be used due to HUD viewing Key as rental assistance.
Owner Investment: a line item on the Funding Sources page of the full application; member loan/grant and deferred developer fee are not considered Owner Investment
Chris

20. Questions?

21. Submitted Questions
Q: Why does NCHFA want to review and approve drawings prior to beginning construction?
Chris

22. Submitted Questions
Q: Why doesn’t NCHFA have an open cycle for bond applications?
Chris

23. Questions from the Audience?