Presentation Transcript

1. 2012 Kentucky Affordable Housing Conference

   New for 2012 - 2013 Planning for 2014 QAP
2. New for 2012 - 2013
3. Expansion of KHC’s Online Application System KHC will be expanding the online rental application system to include: Pre-Construction Checklist Construction Draws Pre-8609 Checklist Carry-Over Request The expansion will allow KHC to complete the paperless process for Multifamily Finance All check list items will be submitted electronically When a check list has been completed and submitted, the appropriate staff and departments at KHC will be notified via email. Revised closing procedures are being developed to incorporate the paperless process.
4. New 2013 Competitive Tax Exempt Bond Application Round KHC has set aside a minimum of $500,000 in HOME funds to provide Gap financing to support a competitive tax exempt bond application round in 2013. The selection criteria will be published in October/November 2012. Applications will be due in February/March of 2013.
5. Preparing for the 2014 QAP Tax Exempt Bond (TEB)Workshop Supporting KHC’s desire to promote the use of TEB Non-KHC Multifamily Resources Supporting the need to work collaboratively with other program resources Preparing for a Different Tomorrow Supporting the need to target resources Supportive Housing Supporting the need to address the housing needs of the most vulnerable
6. 2014 QAP KHC will develop the 2014 QAP to incorporate the following corporate priorities: Maintain and rehabilitate existing rental stock, including acquisition/rehab Include energy efficiency measures to maintain long-term affordability. Target Resources to the lowest absolute incomes and those with special needs, which will require deep subsidies. Emphasis placed on programs that demonstrate success and impact. Housing Needs Analysis Available on KHC’s Web site, Data Library, Affordable Housing Studies and Research – The State of Housing in Kentucky
7. State Poverty Rates
8. Percent of renters unable to afford fair market rent for a two bedroom unit
9. Extremely Housing Cost Burdened Renter – 35% of income or above
10. Changes for the 2014 QAP Updating Developer Capacity Review Requirements Adding scoring criteria for: Projects funded with Exchange Funds Only. Negative scoring for non-compliance. Out of state HFA compliance certification Review sponsor characteristics Currently for-profit minority or female controlled development entities and nonprofit organizations that materially participate in the development and operation of the project.
11. Proposed Sponsorship Characteristics For-profit minority or female controlled and managed development entity. Non-profit organizations that own 100 percent of the General Partner interest. Public Housing Authorities
12. Allocation of Resources KHC’s previous allocation of Tax Credit resources have been in the following pools: Urban Rural RD/HUD Nonprofit State Priority Maximizing Outcomes
13. Allocation of Resources KHC proposes to change the pool structure to ensure the various housing needs in Kentucky are met through the development of a variety of multifamily housing developments. The proposed structure would allocate resources to the following categories: Nonprofit Supportive Housing New Construction/Adaptive Reuse Existing/Rehab Pool Community Impact Pool
14. Nonprofit Supportive Housing Approximately 21 percent of the state’s allocation will be set-aside for nonprofit supportive housing The pool will include the former state priority pool projects, which will be a set-aside within the pool Recovery Kentucky Scholar House The remainder of Housing Credits will be competitive for nonprofits providing supportive housing services in at least 50% of the units for individuals and families who are: Homeless, at risk of homelessness, victims of domestic violence, and/or have disabilities and who require access to supportive services
15. New Construction Pool Approximately 26 percent of the state’s allocation will be set-aside for: Developments that create new rental units. Adaptive re-use developments, which create new rental units from a building that previously was not designated as housing. No new construction in a QCT which has high concentrations of affordable housing units and poverty Texas HFA fair housing law suit for creating a desperate impact by centralizing poverty
16. Existing/Rehab Pool Approximately 34 percent of the state’s allocation will be set-aside for: Developments that involve substantial rehabilitation of an existing structure (affordable or market rate housing) and/ or a; Development otherwise in danger of being lost as affordable housing Includes: Developments being removed by a federal agency Housing Credit Developments with compliance periods that have expired, or are expiring in the current year; Re-use of an existing housing unit(s) for conversion into affordable housing where a minimum of 75% of the development is converted to affordable housing (100% of the existing structure must be part of the overall development)
17. Existing Rehab Pool The number of Housing Credit developments that have completed the initial 15 year compliance period seeking another allocation of Housing Credits will be increasing in the years to come. KHC is considering developing a scoring component for post 15 year projects, awarding points for the number of years after the 15 year compliance period. 0 – 1 year, 0 points 2 - 4 years, 2 points 5 year or more, 5 points
18. Existing Rehab Pool Developments which have Federal assistance (HUD or RD) KHC is considering developing a scoring component for HUD/RD projects, awarding points to properties identified as a priority (properties which have the greatest need or are at risk) by HUD or RD KHC will work with the state offices of HUD and RD to develop criteria
19. Community Impact Pool Approximately 19 percent of the state’s allocation will be set-aside for: Developments that are part of a broader or comprehensive program of neighborhood improvement and have the capability of fundamentally changing the character of a neighborhood Developments that are a key component of a larger redevelopment plan and is identified as such in a letter from the local municipality Is located in an area with few affordable housing options, or will otherwise have an immediate high impact for potential residents Louisville Hope VI set-aside will be funded from this pool.
20. Proposed Allocation of Resources Pool% of resources Nonprofit – Supportive Housing 21% Approximately $1,950,000 Recovery KY Set-Aside $750,000 Scholar House Set-Aside $700,000 Competitive $500,000 New Construction/Adaptive Reuse 26% Approximately $2,500,000 $1,250,000 – Urban $1,250,000 - Rural Existing/Acquisition Rehabilitation 34% Approximately $3,250,000 $1,625,000 – Urban $1,625,000 - Rural Community Impact 19% Approximately $1,800,000 Louisville Hope VI Set-Aside $800,000 Competitive $1,000,000
21. Planning for the Expiring Fixed 9% credit factor Impact of developments Addressing the GAP No additional KHC funds for GAP financing Evaluating KHC’s credit per unit limitations The current credit per unit limitation is maximizing projects use of eligible basis A lower credit per unit number will provide excess basis which can be used to offset a GAP, allowing KHC to continue to allocate at 9%
22. Tax Exempt Bond with 4% Credits KHC proposes to change the incentive for 9% developments which also propose a viable tax exempt bond transaction Projects which apply for 2014 tax exempt bonds and close on the bond transaction prior to the application round for 2015 housing credits, will be eligible for additional points on one 9% housing credit project for 2015 housing credits
23. 130% Basis Boost KHC is considering restricting the 130% basis boost to the following properties: Properties in rural areas Properties providing supportive housing Properties that target lower income households Properties thatincludeenhanced energy efficiency features TBD by KHC’s Design and Construction Department
24. Maximum Credit Cap Requirements KHC will establish a single credit cap limitation $1,500,000 applicable to: General Partners Regardless of ownership interest Affiliates and entities with a Controlling Interest as defined by the QAP Consultants receiving more than 25 percent of developer fees Evidenced on application disclosures and final cost certification Maximum Credit per project $1,250,000
25. Underwriting KHC will review its underwriting requirements for: Debt Coverage Ratio requirements Reserve for Replacement Considering the Capital Needs Assessment requirements Operating Deficit Reserve Ensuring viability for the entire 15 year compliance period
26. Universal Design KHC will review its Universal Design requirements Incorporating standards for amenities Appropriate for population served Long term viability Identifying potential KHC requirements which can be eliminated to reduce the costs
27. Expanding Products KHC is exploring the development of new funding strategies for the Risk Share program Goal of providing permanent mortgages to support Housing Credit properties Developing separate loan criteria which will be incorporated into the Rental Guidelines KHC is developing strategies to utilize the Housing Development Fund to provide construction and bridge financing
28. Proposed Timeframes Developer Forums – Nov & Dec 2012 Draft QAP – January 2013 Public Hearing – March 2013 KHC Board Approval – April 2013 Governor’s Approval – April 2013 Application Open – July/Aug 2013 Application Submission – September 2013 Announcements – Nov/December 2013
29. Questions??