2018 HOME PROGRAM APPLICATION WORKSHOP

2018 HOME PROGRAM APPLICATION WORKSHOP
THDA Community programs division January 18, 2018 – Nashville, TN January 24, 2018 – Knoxville, TN January 31, 2018 – Jackson, TN Leading Tennessee Home by creating safe, sound, affordable housing opportunities

HOME Abbreviations: CHDO: Community Housing Development Organization
IDIS: Integrated Disbursement and Integration System HUD’s FUND management system PIMS: Participant Information management System THDA’s non-profit information management system Leading Tennessee Home by creating safe, sound, affordable housing opportunities

2018 HOME Allocation THDA expects the 2018 allocation for HOME to be similar to 2017 The actual allocation amount will be unknown until a full budget or final continuing resolution is passed. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Expected 2018 HOME Allocation
FY 2018 is estimated to be $9.5 million Leftover FY 2017 funds: $1.8 million Pre-2017 Funds Set-Aside for CHDOs (approximately): $223,000 Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Allocation of Funding 10% for Administration
4% THDA 6% Grantee Up to 5% for CHDO Operating Expenses THDA limits CHDO Op Expenses to 7% of the CHDO grant 18% for CHDO Set-Aside 67% for Urban/Rural Projects 45% Urban round 55% Rural round Leading Tennessee Home by creating safe, sound, affordable housing opportunities

2018 Application Dates Applications due by 4:00PM (CST) on Thursday, March 8, 2018 Successful applicants will be notified at the end of May 2018 2018 Contracts will be effective July 1, 2018 through approximately June 30, 2021 2018 Contracts are contingent upon allocation of funds and approval of the 2018 Action Plan Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Eligible Applicants Cities and Counties
501(c)(3) Non-Profit organizations Charitable Organization 501(c)(4) Non-Profit organizations Non-profit Social welfare organization 501(c) designation must demonstrate proof from the IRS of the status or designation Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Local Participating Jurisdictions (PJs)
Receive own HOME funds directly from HUD Non-CHDO applicants from Local PJs are not eligible to apply for State HOME funds * * * * * * * Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDOs in Local PJs CHDOs proposing projects in Local PJs are eligible to apply for 2018 State HOME CHDO Reserve funds Combined funding from the Local PJ and the State cannot exceed $500,000 for any specific grant period Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Eligible Non-Profit Applicants
All private, non-profit organizations must be: Organized and existing in the State of Tennessee (as evidenced by a Certificate of Existence from the Tennessee Secretary of State, dated no more than thirty (30) days prior to the application date) Or Be organized and existing under the laws of another state and be qualified to do business in Tennessee (as evidenced by a Certificate of Existence from the other state’s Secretary of State dated no more than thirty (30) days prior to the application date and by a Certificate of Authorization to do business in Tennessee from the Tennessee Secretary of State, dated no more than thirty (30) days prior to the application date) Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Eligible Non-Profit Applicants
Have a Certificate of Existence dated within 30 days of application due date (February 8, 2018 or after) If organized outside of Tennessee, also have a Certificate of Authorization dated within 30 days of application due date (February 8, 2018 or after) Have among its purposes the provision of housing to low income household Have standards of financial accountability Have a active 501(c)(3) or 501(c)(4) designation from IRS Additional requirements in Non-profit Checklist/CHDO Designation Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Eligible CHDO Applicants Must:
Meet all of the requirements for a non-profit organization AND: Be independent Not be a governmental entity Have a defined service area that does not include all of Tennessee Maintain accountability to low income community residents Have paid staff with housing development experience W-2s and/or W-4 submitted with application to document the paid staff Have a history of serving the community in which the HOME project is to be located THDA will be happy to review your CHDO structure anytime prior February 15th or submission of your application. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Draw Down Requirements
All applicants with prior HOME grants must meet both of the following: Have submitted a complete request for payment form with all supporting documentation by February 28, 2018; and Be in material compliance with all other THDA programs in which they participate Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Draw Down Requirements
HOME Grant Year Draw Down Requirement 2012 CHDOs 100% 2012 – 2013 Urban/Rural 2013 CHDOs 2014 Urban/Rural/CHDO 75% Regular Round and CHDOs 50% 2016 CHDO Mini-Rounds 2017 Urban/ Rural 2017 CHDOs 25% Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Eligible Activities Urban and Rural Rounds CHDO Round
Owner-Occupied Rehabilitation Programs including reconstruction Down Payment Assistance Programs CHDO Round Development of housing for home buyers New Construction Acquisition and Rehab Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Rental Housing Programs
Rental housing activities are not eligible for funding through the State HOME program Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Minimum and Maximum Grants
Applicants must apply for at least $100,000 Maximum grant is $500,000 Limit of $750,000 that can be awarded to any one county Grants to successful applicants in the same county will be reduced proportionately If grants must be reduced, the goal is a minimum of $250,000 but could be less Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Commitment
Urban-Rural grants are committed when the Grantee’s subgrant is set-up in IDIS The subgrants cannot be set-up unless the fully executed Working Agreement has been returned to THDA Grantees need to submit Working Agreements within 30 days of THDA’s transmission of the Working Agreement Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Commitment Requirement
New Federal Requirement – Funds committed to State recipient or subrecipient must be committed to project within 36 months of HUD grant obligation to the State All units must be committed to site specific units by: June 30, 2021 for FY2018 Funds HUD will recapture any funds not committed to specific activities by the deadlines. If this occurs, these funds will be lost to Tennessee! Grant extensions cannot be made to cover funds that do not meet this requirement Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Threshold Criteria Submission of a COMPLETE application
Application is signed Application has all required documentation and attachments Proposal of an eligible activity Proposal of a project that is physically, financially and administratively feasible Proposed program meets the requirements of the HOME Final Rule at 24 CFR Part 92, as amended Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Threshold Criteria There is no cure period
Incomplete applications will not be considered Review the application before you submit it THDA staff will not contact you for missing documentation Leading Tennessee Home by creating safe, sound, affordable housing opportunities

PIMS Participant Information Management System (PIMS)
On-line tool for CHDO’s to Submit Required Documentation You will first need to establish an account on the PIMS system. Instructions are included in the application package It is YOUR responsibility to make sure that all required documents are uploaded and saved in the system prior to the application deadline date. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Project Soft Costs All project soft costs count toward the HUD maximum per unit subsidy limit. If a contracted 3rd party performs the service the cost CAN NOT exceed the actual contracted amount Costs for progress reviews and preparing work write- ups/projects cost estimates Costs for lead-based paint inspections, risk assessments and clearance testing Architectural and engineering fees Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Rehabilitation Programs
Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Owner-Occupied Rehabilitation
HOME funds may only be used for the rehabilitation, including the reconstruction, of existing structures At project completion, the unit must be in compliance with all applicable building codes, UPCS, and THDA Design Standards for Rehabilitation If no local building code exists the State adopted existing building code will prevail Leading Tennessee Home by creating safe, sound, affordable housing opportunities

“Reconstruction” is defined as the rebuilding, on the same lot, of housing standing on a site at the time of project commitment, except that housing that was destroyed by a disaster may be rebuilt on the same lot if HOME funds are committed within 12 months of the date of destruction. The number of housing units on the lot may not be decreased or increased as part of a reconstruction project. The reconstructed housing must be substantially similar to the original housing unit. All reconstructed housing will have a compliance period of 15 years. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

If the proposed HOME investment for hard construction costs into a unit to be rehabilitated exceeds 75% of the after rehabilitation appraised value of the unit, the unit must be reconstructed. Hard construction costs exclude those for building inspections, lead-based paint inspections, energy related inspections, and work write-ups, but include all remaining costs associated with addressing lead-based paint hazards for the unit. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

The maximum investment per unit will be limited by both: The federal maximum HOME subsidy limit as adjusted by the number of bedrooms per unit and The after rehabilitation value of the unit permitted under the federal regulations. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Subsidy Limits MINIMUM HOME DOLLARS $1,000 PER UNIT
MAXIMUM HOME DOLLARS $58,787 0-Bedroom (Efficiency) Limit $67,391 1-Bedroom Limit $81,947 2-Bedroom Limit $106,013 3-Bedroom Limit $116,369 4-Bedroom Limit Subsidy Limits are published annually by HUD Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Applicant Selection Applicants must be selected using a predetermined process and criteria Sub grantee must advertise the Date, time, location and criteria for application Application scoring must be based on a predetermined criteria, no awards by lottery will be allowed Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Property Standards The new HOME rule made significant changes in 92 CFR § (Property Standards) HUD is to provide additional guidance on a new version of Uniform Physical Condition Standards (UPCS) for the HOME program THDA has developed written rehabilitation standards that must be met for all HOME-assisted rehabilitation projects THDA Designs Standards for Rehabilitation of Single Family and Multi-Family Units Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Property Standards Work write-ups or plans and specifications must be approved by THDA prior to any project being put out to bid Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Property Standards For rehabilitation programs, the HOME-assisted single-family unit must, at project completion: Conform to THDA Design Standards for Rehabilitation of Single-Family Housing and Multi-Family Units; and Meet all local and State codes or other applicable codes, rehabilitation standards, UPCS, and zoning ordinances, requirements; or Absent such codes, meet the current, State- adopted edition of the International Existing Building Code Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Property Standards Rehabilitation must address the useful life of major systems: Structural support Roofing Clading and weatherproofing Plumbing, electrical and HVAC If the remaining useful life of a component is less than the affordability period, the rehabilitation will need to address the deficiency Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Rehabilitation and Lead-Based Paint
All units built pre-1978 will require a lead based paint inspection If any indication of lead hazards are found a full risk assessment is required Both inspection and assessment must be performed by a certified lead inspector Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Rehabilitation and Lead-Based Paint
ABATEMENT Requires a certified lead abatement contractor Certified lead abatement contractors can be found on the TDEC website under the Division of Sold Waste Management: -program.shtml Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Work Write-ups THDA must review and approve work write-ups, written cost estimates, plans, specifications, and UPCS Checklist before the project is put out to bid Final bids that are not within 10% of the initial cost estimate may have to be rebid The work write-up must break out the lead and rehabilitation costs for each line item Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Manufactured Housing Rehabilitation of existing manufactured housing is not an eligible activity in the State HOME program Replacement of a substandard manufactured housing unit is also not allowed in the State HOME program Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Progress Reviews The final HOME rule for the rehabilitation process requires a minimum of 3 progress reviews (inspections), performed by an approved Rehab Coordinator. Initial Review / Work Write Up Progress Review Final Review For urban/Rural homeowner rehabilitation the grantee’s rehab coordinator will perform at a minimum the initial review/work write up, progress review and final review Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Homeownership Programs

Eligible Activities CHDO Round Urban Rural Round
CHDOS will only be funded as the owner and developer of units for homeownership New construction of units Acquisition/Rehabilitation/Sale Urban Rural Round Non-CHDO non-profit agencies and local governments are limited to down payment assistance programs Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Commitment Beginning with FY 2015, CHDO commitments must meet the 24-month deadline by program year and not on a cumulative basis FY 2018 CHDO funds must be committed to site-specific units by approximately June 30, HUD will automatically recapture any CHDO funds not committed to specific CHDO activities by the deadlines. Funds will be lost to Tennessee! When designing your program, be aware that…. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Match All applications from nonprofit housing developers submitting an application under the CHDO Round must provide a 25% match towards the proposed project. HOME match is permanent, non-federal contributions to a project A description of eligible match can be found in the program description. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Property Standards For CHDO new construction programs, the HOME- assisted single-family unit must, at project completion: Conform to THDA Design Standards for New Construction of Single-Family and Multi-Family Housing Units; and Meet all local and State codes, rehabilitation standards, UPCS, and zoning ordinances, requirements; or Absent such codes, meet the current, State-adopted edition of the International Residential Code for One- and Two-Family Dwellings Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Property Standards New construction must also:
Meet accessibility requirements Mitigate disaster impact Meet the State-adopted edition of the International Energy Code Meet Energy Star qualifications or achieve a HERS index of 85 or less when tested by a certified rater Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Progress Reviews For CHDO’s performing New Construction or Acquisition & Rehab the grantee’s rehab coordinator must contact THDA’s Construction Manager, Dwayne Hicks to schedule progress and final reviews These are in addition to regular Codes inspections and requirements Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Fees A CHDO may use fifteen (15%) percent of its CHDO Grant for operating expenses A maximum of seven (7%) for administration A maximum of eight (8%) for developer’s fees Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Developer Fees A CHDO may request an eight (8%) percent developer fee if the CHDO is acting as a developer of housing The Developer Fee is 8% of the HOME funds used to construct or acquire and rehabilitate the unit for homeownership The Developer Fee is a project soft cost and counts against the maximum per unit subsidy limit Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Operating Expenses
A CHDO may request up to seven (7%) percent of its grant as CHDO operating expenses CHDOs are encouraged to use CHDO operating expenses for direct costs to operate the HOME program A CHDO cannot charge indirect costs unless it has a cost allocation plan approved by its cognizant agency Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Proceeds CHDO proceeds are the HOME funds returned to the CHDO upon the sale of a unit developed by the CHDO from the buyer’s permanent financing The CHDO must use its proceeds to develop additional units for Low income homeownership Once CHDO proceeds are used a second time to develop more low income housing for homeownership, the HOME restrictions on the use of CHDO proceeds are eliminated Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Soft Second Mortgages/DPA
A soft second mortgage/DPA is the direct HOME assistance provided to the home buyer CHDOS are required to leave HOME funds in the unit at the time of sale to an eligible buyer Soft second mortgages/DPA are limited to the lesser of $14,999 in HOME funds or the amount of HOME funds necessary to qualify the household for permanent financing, but not less than $1,000 Leading Tennessee Home by creating safe, sound, affordable housing opportunities

All grant recipients must use the THDA Single-Family underwriting template to determine the amount of direct HOME assistance THDA must review and approve the determination of the level of assistance If the underwriting template indicates that the home buyer does not have an unmet need for the assistance, the grantee does not have a viable HOME-assisted homeownership project Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Soft second mortgages/DPA are forgiven at the end of five (5) years if the unit remains the permanent residence of the initial buyer and is not leased or vacated If the unit remains in compliance, but is sold during the affordability period, the amount of HOME funds subject to recapture can be reduced by 20% per year Recaptured funds are not CHDO proceeds and must be repaid to THDA Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Sales Price Limits The currently published HUD Property Value Limits are the sales price limits for homeownership programs Any unit completed within the previous 12 months is considered new construction ALL units must be sold at the appraised value of the home at time of sale Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Underwriting Front end ratios may not exceed 29%
Back end ratios may not exceed 41% Lower ratios are encouraged Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Permanent Financing Use THDA mortgage products whenever possible
If not a THDA loan, the first mortgage is comparable if the interest rate does not exceed the THDA Great Choice interest rate by more than one (1%) percentage point The permanent loan must have a fixed interest rate, fully amortizing over the 30-year loan term No pre-payment penalty for early payoff Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Home Buyer Contribution
The home buyer must make a contribution from their own funds equal to one (1%) percent of the purchase price of the property If the buyer has liquid assets over $20,000, the home buyer contribution must be ten (10%) percent of the liquid assets instead of 1% of the purchase price Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Home Buyer Education All home buyers must complete a home buyer education program from a THDA qualified home buyer education trainer prior to purchase Beginning 2020, all home buyers must complete home buyer education from a HUD certified home buyer education trainer, prior to purchase Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Neighborhood Market Conditions
CHDOs proposing homeownership projects must document that the neighborhood market conditions demonstrate a need for the project Must complete a market study as part of the HOME application Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Qualified Home Buyers Before construction or acquisition and rehabilitation can begin under homeownership, all CHDOs must demonstrate a pipeline of eligible buyers pre-qualified for a permanent loan. Under certain circumstances THDA will allow a CHDO to apply for an exception to this policy on a project by project basis Criteria for exemption is detailed on page 7 of the HOME program description Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Deadline for Sale Homeownership units developed by a CHDO must be sold to an eligible home buyer within nine (9) months of project completion (Certificate of Occupancy) If a homeownership unit is not sold by the 9 month deadline, the unit must be converted to rental housing for the appropriate rental affordability period If the unit is not converted to rental housing, all of the HOME funds invested in the unit must be repaid to THDA Leading Tennessee Home by creating safe, sound, affordable housing opportunities

HOME Program Requirements

Income Limits HOME funds may only be used to assist:
Households with gross annual income at or below 80% of area median income, adjusted for family size Income limits are updated annually by HUD Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Compliance Period Homeowner Rehabilitation Programs
Five year compliance period 20% annual forgiveness feature If unit is sold during the compliance period, the amount of HOME funds subject to recapture can be reduced by 20% per year Recaptured funds are repaid to THDA Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Affordability Period Homeownership Programs
Five year affordability period secured by soft second mortgage Forgiven at the end of the 5 years IF the unit remains the principal residence of the initial home buyer and is not leased If the unit does not remain in compliance, the entire HOME investment must be repaid to THDA Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Affordability Period The HOME-assisted home buyer may sell or otherwise transfer the unit before the end of the affordability period If the unit is sold or transferred during the affordability period, the amount of HOME subsidy subject to recapture will be reduced by 20% per year of occupancy by the initial home buyer The amount subject to recapture is limited to the availability of net proceeds Leading Tennessee Home by creating safe, sound, affordable housing opportunities

After Rehabilitation Property Value
Applicable to homeowner rehabilitation projects This is the affordability requirement for owner- occupied rehabilitation projects Based on 95% of median purchase price for an area as established by HUD on an annual basis Must be determined prior to project set up Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Universal Design/Visitability
The inclusion of features that allow individuals with physical disabilities to reside in or to visit housing that is constructed or rehabilitated with federal funds Universal design allows housing to be adapted to the individuals current or future needs Visitability allows individuals who have trouble with steps or use wheelchairs or walkers to live in or visit the unit Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Universal Design Features
Step-less entrances Minimum 5’ x 5’ level clear space inside and outside entry door Broad blocking in walls around toilet, tub and shower for future placement of grab bars Full-extension, pull-out drawer, shelves and racks in base cabinets in kitchen Front mounted controls on all appliances Lever door handles Loop handle pulls on drawers and cabinet doors Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Visitability Features
One zero step entrance Doors with 32 inches of clear passage space One bathroom on the main floor that is accessible to a person using a wheelchair Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Other Federal Requirements

Relocation The Uniform Relocation Act is complex and covers all HOME projects. Contact THDA prior to submitting a HOME application if individuals may be displaced or relocated due to your program Relocation has the potential for significant financial impact on a project Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Equal Opportunity & Fair Housing
No individual can be excluded from participation in the HOME Program on the basis of: Race Color Religion Sex Familial Status National Origin Disability Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Affirmative Marketing
Applies to all homeownership programs of five or more units Grantees must adopt procedures to provide information and otherwise attract eligible persons in the housing market to the available housing without regard to race, color, religion, sex, familial status, national origin or disability Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Limited English Proficiency (LEP)
Each Grantee must have policies and procedures to assist non-English speaking applicants Local staff should be knowledgeable of the procedures Each Grantee should also have a process that notifies LEP persons of language assistance available (i.e. notices, signs) Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Environmental Review HOME funds cannot be committed to a project prior to the completion of the environmental review Tier 2 reviews must be completed before the work write-up is submitted for approval The applicability of the environmental review is based on the project as a whole and not the type of costs paid with HOME funds No commitment of non-federal funds in the project before completion of the environmental review Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Site and Neighborhood Standards
Promote a greater choice in housing opportunities Ensure that the proposed activity does not allow or promote segregation on the basis of race, disability or income Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Flood Plains THDA does not fund HOME projects in a flood plain

Debarment and Suspension
Grantees must verify that contractors are not presently debarred or suspended from participating in a federal program A list of debarred contractors can be found on the HUD website Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Conflict of Interest Applies to the procurement of property and services The new HOME regulations have been revised to clarify that the covered conflict involves: a financial benefit or interest; and covered familial relationships are limited to immediate family members Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Procurement Open and competitive solicitation that encourages competition by communities and non-profit agencies applies to: ALL goods and services Professional service contracts At a minimum obtain three (3) bids Have written procedures for selecting the successful bid. All procurement activity must comply with local, state and federal procurement policy. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

2018 HOME Application Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Submission Instructions
ONE original application and supporting documentation No faxed, ed or drop box applications will be accepted No binders or report covers No cover page Leading Tennessee Home by creating safe, sound, affordable housing opportunities

All Applicants Complete all tabs required in the instructions
Answer all questions If not applicable to your project, mark N/A Complete Implementation Plan that is pertinent to your project type Attach copy of most recent financial audit Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Neighborhood Market Study
All applicants proposing home buyer programs must demonstrate a market demand for the project Complete Neighborhood Market Study Be honest in the conclusions the study demonstrates There may not be a demand for the project Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Financial Analysis of Non-profits
The asset and liability information in the audits will be used to evaluate the financial capacity of the non-profit organization by reviewing financial ratios, including: Current Ratios Working Capital Cash to Working Capital Current to Non-Current Liabilities Debt Ratios Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Non-Profit Checklist/CHDO Designation
Attachment One: Part I Certificate of Existence dated within 30 days of application Copy of 501(c)(3) or (c)(4) letter from IRS Copy of Charter and By-Laws Resolution authorizing submission of HOME application Non-Profit Board Composition CHDOs must indicate the low-income Board members Copy of most recent Board minutes One page explanation of how Board is involved in the operation of the non-profit Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Non-profit Checklist/CHDO Designation
List of organization’s staff and experience Copy of business plan or strategic management plan Documentation of operating funds and amounts Explanation of other programs operated by the agency One page explanation of the organization’s experience in housing, particularly for low and very low income Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Checklist & Designation
CHDO Organizational Requirements CHDO legal structure CHDO independence CHDO accountability to its Low Income Community CHDO Capacity List of CHDO employees and copy of current W-2s and/or W-4s CHDO Role as Developer of home buyer projects CHDO Operating Expenses CHDO Certification Signed by CHDO’s attorney Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Application Evaluation

Scoring Threshold Includes a minimum point threshold that applications must receive in order to be considered for funding. To be eligible, an application must receive a minimum threshold score equal to 50% of the total points available under the applicable scoring matrix. Includes the ability to re-allocate funding between the Urban and Rural matrices should an insufficient number of applications receive the minimum threshold score necessary to award all funds allocated under either respective matrices Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring – Up to 190 Points
Program Design - Up to 50 Points Planning, readiness and administrative capacity Program administrators have been identified with Knowledge of HOME grant administration Ability to follow Implementation Plan time line Ability to draw down funds in a timely manner Has a lack of monitoring findings Has not left HOME funds in a grant in excess of $75,000 at close- out Responds to client or contractor concerns or complaints Responds to THDA staff and requests for information Follows THDA HOME policies and procedures Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring Individuals providing architectural, construction management and/or inspection services have been identified with: Qualifications to perform the services Ability to perform the work within the time line of the Implementation Plan Consideration of the number and locations of current grants for which an individual/firm is providing inspection services in any given program year will be used in evaluating the application Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring If the applicant is a local community, the local government is involved in the administration of the program All necessary components to accomplish the program proposed are identified in the program design Program designs for homeowner rehabilitation activities that set-aside all or a portion of the available assistance to households with incomes at or below 50% of AMI will be prioritized Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring The program design should provide a timeline, prepared in accordance with THDA’s application instructions, that clearly shows that the Applicant will meet the commitment requirements of the program and the completion of all units and the close out of the grant by June 30, 2021 Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring County Need Score – Up to 40 Points
% of owner households that are low income % of affordable owner units built before 1960 % of food stamp recipient households % of owner households greater than one and one half times overcrowded % of average homeowner delinquency rate % of county poverty rate County unemployment rate Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring Not Proportionately Served Score – Up to 40 Points
Awards points to counties based on the percentage of HOME dollars awarded in each county Higher points awarded to counties where the amount of prior HOME funding is below the state average For multi-county project, points are awarded proportionately based on the number of units in each county Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring Disaster Areas – Up to 10 Points
Points awarded to projects in counties declared presidential disaster areas Leverage – Up to 10 Points Points awarded based on the actual % of other funding in the project Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring Match – Up to 20 points
Points will be awarded to applications that include a committed contribution of eligible match resources towards the project implementation. A commitment of eligible match contribution from an external source must be documented in the application from the source providing the contribution. Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring HOME Match Contribution that is…. Points
Equal to or greater than 15% of the proposed HOME funds to be used for project costs 20 points Equal to or greater than 5% and less than 15% of the proposed HOME funds to be used for project costs 10 points Equal to or greater than 1% and less than 5% of the proposed HOME funds to be used for project costs 5 points Less than 1% of the proposed HOME funds to be used for project costs 0 points Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring Energy Conservation – Up to 10 Points
Points awarded to applications for rehabilitation that include an independent energy audit and Incorporate, to the extent feasible, the recommendations of the audit report in the rehabilitation work write-up Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Urban-Rural Scoring Tennessee Growth Policy Act – Up to 10 Points
Points awarded to applications from cities and counties with approved Growth Plans Counties not subject to the Tennessee Growth Policy Act will also receive these points Nonprofit applicants not eligible for points Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Consideration Factors
Grantees and Administrators Have the benchmarks identified in the implementation plan been met? Have there been any monitoring findings in the last 3 years? Nature of the findings and how many? Procedural changes made to ensure no repeat finding? Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Is required documentation submitted on time and is it complete? Is there a pattern of incomplete documentation or lack of promptness? Are there complaints that have been determined to be justified and is there an identifiable pattern? Has there been good and open communication among all parties? How many active contracts does an administrator have and what is the status of each? Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Rehab Coordinators Have work write-ups or plans/specifications consistently adhered to the THDA Design Guidelines and the UPCS Checklist? Has the work been accomplished as agreed upon? Are deficiencies or inconsistencies resolved or clarified promptly? Have inspections been completed in a timely manner as requested by the administrator? Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Rehab Coordinators Has there been good and open communication among all parties? How many active contracts does the Rehab Coordinator manage and what is the status of each? Are there complaints that have been determined to be justified and is there an identifiable pattern? Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Scoring – Up to 120 Points
CHDO Capability – Up to 50 Points Program Design – Up to 25 Points Sites identified and CHDO has site control CHDO has an existing pipeline of potential home buyers ready to purchase or working toward readiness to purchase CHDO commitment must be to a specific address and home buyer to meet HUD’s 24-month commitment deadline Neighborhood study demonstrates a market for the project CHDO has capacity to secure other funding for the project Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Scoring Matrix CHDO Organizational Capacity – Up to 25 Points
Has produced successful affordable housing projects of similar size, scope and complexity Has demonstrated capacity to manage home buyer programs Budget reflects multiple sources of funding Able to follow Implementation Plan of prior HOME grants Able to draw down HOME funds in a timely manner Able to complete projects within contract term Has lack of monitoring findings Responds to client concerns and THDA staff Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Scoring Matrix Not Proportionately Served – Up to 40 Points
Disaster Areas – Up to 10 Points Leverage – Up to 10 Points Points awarded based on the % of other funding in the project Leading Tennessee Home by creating safe, sound, affordable housing opportunities

CHDO Matrix Energy Conservation/Universal Design - Up to 10 Points
For acquisition/rehabilitation/resale homeownership programs up to 10 points to applications that, to the extent feasible, incorporate at least three energy conservation measures beyond that required by THDA’s Design Standards for Rehabilitation For new construction homeownership projects, up to 10 points to CHDOs that agree to construct each unit using universal design standards to enable the unit to be visitable to individuals with physical disabilities Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Internet Availability
The Program Description, Application and Attachments will be available on Monday, January 22, 2018 on the THDA website at under Business Partners/Grant Administrators/HOME The application will be in Excel format Nonprofit organizations should upload basic organizational documentation to PIMS Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Contact THDA Community Programs staff can answer your questions about the HOME application until the March 8, 2018 submission deadline Roni Hagy: Craig Stevens: Bill Lord: Call us or schedule a meeting! Leading Tennessee Home by creating safe, sound, affordable housing opportunities

THDA Address Community Programs Division
Tennessee Housing Development Agency Andrew Jackson Building, Third Floor 502 Deaderick Street Nashville, TN THDA is in a State office building which only uses the zip code If mailing allow at least 10 days for application to be delivered to THDA Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Late applications will not be evaluated
Application Deadline Thursday, March 8, 2018 4:00 PM CST Late applications will not be evaluated Leading Tennessee Home by creating safe, sound, affordable housing opportunities

Questions Leading Tennessee Home by creating safe, sound, affordable housing opportunities

2018 HOME PROGRAM APPLICATION WORKSHOP

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2018 HOME PROGRAM APPLICATION WORKSHOP

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