2009 Multi-Family Housing Preservation and Revitalization Program MPR Notice Of Solicitation of Applications NOSA Int

1. 2009 Multi-Family Housing Preservation and Revitalization Program (MPR) Notice Of Solicitation of Applications (NOSA) Introduction

2. Overview What You Should Know… Eligibility Pre-Application Submission Selection Process Scoring & Ranking Process Steps 1 – 4 Processing Final Applications

3. Things You Should Know… Links in Federal Register http://www.rurdev.usda.gov/rhs/mfh/MPR/MPRHome.htm does not always work Type it in http://www.rurdev.usda.gov/rd/NOSAs/index.html does not work at all Type in http://www.rurdev.usda.gov/rd/NOFAs/index.html instead All other links work just fine

4. Eligibility Applicant eligibility: 7 CFR 3560.55 – Section 515 7 CFR 3560.555 – Section 514/516 Existing Multi-Family Housing (Section 515) only: (12 mos. Avg. vacancy rate) Vacancy cannot exceed 10% (16 or more units) Vacancy cannot exceed 15% (16 or less units)

5. Eligibility (Con’t.) The Applicant/Transferee must: Possess the ability to own and operate after MPR transaction Demonstrate via Capital Needs Assessment (CNA) and restructuring that the deal is financially feasible and necessary.

6. Pre-application Submission The MPR NOSA and Pre-application Form can be found at: http://www.rurdev.usda.gov/rd/nofas/ The Pre-application Form .pdf format Fillable

7. Pre-application Submission (Con’t.) On-line Submissions Complete the Form Print the Form for their Records NOTE: Please print the Form Before you Send it. If Form is Correct Click on the “Send Form & Clear” Button Send Form & Clear emails the Form to MPDL

8. Pre-application Submission (Con’t.) Applicant Receives an Automatic Reply Pre-Application Received Instant notification that their application has been received Will eliminate duplicate submissions If Form is Incorrect Click on the “Clear Form” Button to begin again. On-line submissions will receive the actual date and time of the submission.

9. Pre-application Submission (Con’t.) Hard Copy Submissions Will be stamped the date of receipt with time of 5:00 pm – Eastern Time In Event of Transfer Complete Pre-Application must be accompanied by Purchase Agreement For Section 515 properties that do not meet vacancy requirement Complete Pre-Application must be accompanied by Market Survey For Section 514/516 properties that do not meet the positive cash flow requirement Complete Pre-Application must be accompanied by Market Survey

10. Pre-application Submission (Con’t.) Hard Copy Submissions: Cynthia Foxworth or Anita Kapoor Multi-Family Housing Preservation and Direct Loan Division – STOP 0782 (Room 1263-S) U.S. Department of Agriculture Rural Housing Service 1400 Independence Avenue, SW Washington, DC 20250-0782 DUE DATE IS JUNE 29, 2009

11. Selection Process Points will be awarded as follows: Contributions of Funds from Other Sources – 25 points $3,000 - $5,000/unit/property = 15 pts. Greater than $5,000/unit/property = 20 pts. Greater that $5,000/unit/property w/written commitment by a 3rd party to contribute 25 percent or more of any allowable developer fee to hard costs of construction = 25 pts.

12. Selection Process (Con’t.) Owner Contribution = 15 pts. $5,000/project for transaction costs = 5 pts. $1,000/unit/project for hard costs = 10 pts. These funds cannot be from project reserves/operating funds/ in the form of a loan.

13. Selection Process (Con’t.) Project Age = 25 pts. Operational date: Prior to Dec. 21, 1979 = 25 pts. On or After Dec. 21, 1979; but before Dec. 15, 1989 = 20 pts. On or After Dec. 15, 1989; but before Oct. 1, 1991 = 15 pts.

14. Selection Process (Con’t.) Troubled Projects = 25 pts. Classification B (Stay-in Owners) = 25 pts. Classification C or D (24 mos. Or more) = 20 pts. Classification C or D (less than 24 mos.) = 15 pts.

15. Selection Process (Con’t.) Prior Agency Approval = 20 pts CNA approved on/after Oct 1, 2007 and prior to Oct. 1, 2008 = 10 pts. CNA approved on/after Oct. 1, 2008; but prior to Apr. 29, 2009 = 20 pts.

16. Selection Process (Con’t.) Energy Generation Systems (to be funded by a 3rd party) = 5 pts. Energy Conservation = 10 pts. Energy Star Compliance = 2 pts. HVAC more energy-efficient than previous HVAC = 2 pts. Windows more energy-efficient that previous windows = 2 pts. Attic insulation to be added to property = 2 pts. Green/renewable materials used in the rehab = 2 pts.

17. Selection Process (Con’t.) Tenant Services = 5 pts. New tenant services provided by a NP or Government Agency that will not use funding generated by project rents. = 5 pts.

18. Selection Process (Con’t.) 2009 Additions for Points Consolidation of Project Operations = 10 pts. 2-4 properties = 5 pts 5 or more properties = 10 Presidentially Declared Disaster Area = 10 pts. http://www.rurdev.usda.gov/rd/disasters

19. Scoring & Ranking Process Points will be based on: Pre-application Data from Pre-App MFIS data Documented Written Evidence of Commitments i.e. 3rd party contributions Accuracy of Data Will be Verified Date of Submission – Meets Deadline Borrower ID Project ID Operational Date Classification Number of Units

20. Scoring & Ranking Process (Con’t.) MPDL receives Pre-application Complete & timely filed pre-apps Scored and Ranked By State By Total Score By Funding Categories Simple Complex Portfolio Sale (Avg. score of all projects) Stay-in owner - (simple or portfolio) Change in ownership (Transfer/Sale) - (complex or portfolio).

21. Scoring & Ranking Process States responsibilities: Confirms eligibility Returns Incomplete Pre-apps Sends Rejection Letters w/appeal rights National Office responsibilities: Re-scores Selects Portfolio sales NTE $100,000,000 in debt deferral

22. Step One The Agency reviews eligible pre-applications nationwide, identify pre-applications as either RRH or FLH projects then as Simple, Complex, or Portfolio and separate them by State.

23. Step Two The Agency select, for further processing, the nationally top-ranked portfolio sale transactions until a total of $100,000,000 in potential debt deferral is reached. Portfolio transactions will be limited to one per State (either RRH or FLH) Will count as one (1) MPR transaction.

24. Step Three The highest ranked RRH complex transactions in each state will be selected for further processing Not to exceed 2 per State. The highest ranked FLH complex transactions in each state will be selected for further processing, Not to exceed one (1) per state.

25. Step Four Additional projects selected from the highest ranked eligible pre-applications Involving simple transactions in that state A total of 5 RRH pre-applications for MPR transactions per state is reached. If a FLH complex transaction has not been selected in Step Three one additional FLH project will be selected highest ranked eligible pre-applications involving FLH simple transactions, in that state, until a total of 6 pre-applications for MPR transactions per state is reached.

26. Processing Final Applications States obtain: SF 424 Applications 1 Portfolio 3 Complex (If you have FLH ; otherwise 2 state) 6 Simple (If you have FLH; otherwise 5/state) CNA Appraisal, if applicable Add’l Information per “MPR Application Requirements Checklist”