Habitat Development Activity

1. Habitat Development Activity 2012 CHIP Application Workshop

2. Habitat Development Purpose • To expand the supply of and access to decent, safe, sanitary and affordable housing for very low income households through Affiliates undertaking program eligible activities. How to Apply for CHIP $$

3. Maximum Award Amounts • Up to $300,000 for any application

4. Eligible Applicants • Organizations meeting the definition as a Habitat Affiliate. • Meeting CHIP experience threshold on application due date (i.e. proof of construction and sale of at least two (2) units within the last two (2) years prior to application due date). • For the purpose of CHIP, Affiliates receiving CHIP funds from DCA will act as a Sub-recipient according to the HOME Final Rule at Section 92.2. How to Apply for CHIP $$

5. Eligible Activities Home Buyer Subsidy • A fixed amount of $20,000 per unit • Zero percent deferred payment loan • Loan must be repaid if the borrower refinances the home, sells the unit or no longer occupies the unit as principal residence. How to Apply for CHIP $$

6. Eligible Activities Home Buyer Subsidy (continued) Habitat 580 First Mortgage Loan Option • For borrowers working through Affiliates of Habitat for Humanity with a credit score of 580-619, DCA will finance the first mortgage using CHIP funds. How to Apply for CHIP $$

7. Eligible Activities (continued) • New Construction, reconstruction and rehabilitation are eligible. Each site must meet subdivision/infill design, services and facilities threshold standards as defined within this program. How to Apply for CHIP $$

8. Ineligible Activities • Project Reserve Accounts • Under Reconstruction and Rehabilitation Activities, no pre-1978 units are allowed • Match for other federal programs, except McKinney Act funds • Double-dipping of HOME funds How to Apply for CHIP $$

9. Threshold Criteria • Affirmative Marketing • Certification of Habitat Affiliates’ Third Mortgage Lien • Experience Two units constructed and sold within the past 2 years. • Home Buyer Education/Counseling • Income Determination (60% or less of Area Median Income) • Project Implementation Schedule How to Apply for CHIP $$

10. Threshold Criteria (continued) • Project Design • Site Control • Services and Facilities • Utilities • Visitability How to Apply for CHIP $$

11. Policies • Application Fee May not be charged by any Affiliate to a prospective participant associated with the CHIP-financed Habitat Development Activity. • Appraisals Must comply with the requirements established in the Habitat Development Manual. Must contain “as is” and “after development” value. • Commitment & Expenditure Deadline All project funds must be committed and expended within twenty-four (24) months How to Apply for CHIP $$

12. Policies(continued) • Credit Score A home buyer must have a credit score of 620 or greater unless the Habitat 580 First Mortgage Loan Option is associated with the grant award. • Eligible Sites The property must be zoned for single family residences. If the Sub-recipient is proposing to rehabilitate an existing unit, the existing unit must not have been constructed prior to January 1, 1978. How to Apply for CHIP $$

13. Policies (continued) • Energy Efficiency Design Upon completion, new construction and rehabilitated properties must meet, at minimum, Georgia Energy Codes as outlined in Habitat Development Manual. For newly constructed units, a Certificate of Occupancy will demonstrate satisfaction for this requirement and a Certificate of Final Inspection for rehabilitated units. The Home Buyer Subsidy will not be disbursed until all required documentation is received. How to Apply for CHIP $$

14. Policies (continued) • Energy Star Program Affiliates that receive points for proposing the construction or rehabilitation of units that meet Energy Star Program Standards must provide certification from an Energy Star third party verifier as defined by the ESP. • Environmental Review – Tier I and II Review (discussed in detail by Tarolyn Moore) How to Apply for CHIP $$

15. Policies (continued) • Existing Physical Conditions Must document existing conditions of structures within 1 mile radius of each proposed unit site and include a written strategy for addressing levels of deterioration, vacancy or blight within the area. • Historic Preservation Pre-1978 properties are not allowed; however, if the proposed site is vacant land in an eligible historic district, the construction of the unit must meet all requirements of the State Historic Preservation Office (SHPO). How to Apply for CHIP $$

16. Policies (continued) • Inspections Required to be obtained during construction from either the Local Government Building and Inspection Department or DCA’s list of Approved Building Inspectors as listed in the Manual. Sub-recipients must incur this expense. • Lead-Based Paint Rehabilitation, including reconstruction, of pre-1978 units is not allowed. How to Apply for CHIP $$

17. Policies (continued) • Mortgage Lien Position The second mortgage loan shall not assume a lien position lower than second place without prior authorization. • Participating Lenders All home buyers’ first mortgage loan must be obtained through one of DCA’s Approved Participating Lenders. How to Apply for CHIP $$

18. Period of Affordability • Begins on the date that the project is marked as completed in HUD’s Integrated Disbursement and Information System (IDIS) • Its length depends on the amount of CHIP investment in the property How to Apply for CHIP $$

19. Period of Affordability How to Apply for CHIP $$

20. Property Standards • HOME regulations require all housing using HOME funds to meet all applicable local codes (including the applicable state codes), rehab standards, ordinances and zoning ordinances at the time of project/unit completion. In the absence of a local code, CHIP requires that all units meet the International Residential Code and the International Property Maintenance Code. How to Apply for CHIP $$

21. Property Standards (continued) The HOME regulations also require that the Sub-recipients have Written Rehabilitation Standards for rehabilitation to cover all interior, exterior and system repairs. How to Apply for CHIP $$

22. Application Requirements • Application Fee of $250 • Public Notification • Affiliates Proposing Activities in a Single Jurisdiction: • Must submit a copy of a letter sent to the chief elected officer (and copied to the city/county administrator, if applicable) of the jurisdiction in which the activity will be implemented that details the proposed program activities (i.e. number of households, targeted population groups to be served, addresses of activities– if known– and amount of funds requested). No formal public hearing is required. • Affiliates Proposing Activities in Multiple Jurisdictions: • Must submit a copy of a letter sent to the chief elected officer (and copied to the city/county administrator if applicable) of each city and county in which the activity is proposed (i.e. number of households, targeted population groups to be served, addresses of activities– if known– and amount of funds requested). The letter must detail the proposed program activities. No formal public hearing is required. How to Apply for CHIP $$

23. Funding Determination • Total Points - 100 • Project Design – 50 points • Program Need – 18 points • Program Locational Characteristics – 15 points • Match Committed within Application – 5 points • Past Performance of Applicants – 12 points How to Apply for CHIP $$

24. Funding Determination - Scoring • Program Design • Evidence of Readiness to Proceed • Targets 100% of the assistance to an area within a locally approved Urban Redevelopment Plan, a State Enterprise Zone designated pursuant to O.C.G.A 36-88, a local redevelopment area adopted pursuant to O.C.G.A 36-61, a Tax Allocation District adopted pursuant to O.C.G.A 36-44, or a DCA approved Revitalization Area. • Proposes 100% of the units constructed to meet Energy Star Program Standards. • Evidence of all units constructed to have at least three (3) Universal Design Elements of Universal Design which are not required under O.C.G.A 50-20. How to Apply for CHIP $$

25. Funding Determination - Scoring • Program Design • Set aside assistance to at least one household which includes a family member with a disability. • Sets-aside funding for the purchase of at least one foreclosed property. • Incorporates a demonstrated partnership with a public housing authority or a targeted special need population to move individuals into homeownership. • Proposed program is not located in a community which receives HOME funds directly from HUD as a Participating Jurisdiction. How to Apply for CHIP $$

26. Funding Determination - Scoring • Program Need • Based on the percentage of all persons in all census tracts to be served who are below the poverty line • DCA has provided data in your Administrative Manual How to Apply for CHIP $$

27. Funding Determination - Scoring • Program Locational Characteristics: • Community of Opportunity • Georgia Initiative for Community Housing • Federally Declared Disaster Area How to Apply for CHIP $$

28. Funding Determination - Scoring • Match Committed within Application • The Applicant has secured a firm local commitment of a permanent contribution of match to be provided toward the costs proposed • Match may take many forms; however, in no case may match be provided from the household assisted. How to Apply for CHIP $$

29. Funding Determination - Scoring • Past Performance of Applicants • Applicant may receive points by meeting either one of three criteria: 1.Applicant received at least one CHIP grant funded in the 2007, 2008, or 2009 CHIP application rounds and at least the following percentage of eligible project funds for every award received has been expended by the applicant for eligible projects: • 2007 – 100% • 2008 – 70.0% • 2009 – 40.0% How to Apply for CHIP $$

30. Funding Determination – Scoring (continued) 2.The Applicant has not received a CHIP grant in 2009 or a prior year. 3.The Applicant received CHIP funds in 2006 or a prior year and has closed out the CHIP grant and expended at least 60% of all funds originally awarded. How to Apply for CHIP $$

31. Funding Determination - General • The points received by each Applicant on the rating factors will be totaled and the total scores will be ranked accordingly from highest to lowest. CHIP awards will be based on this final ranking to the extent funds are available. In case of ties, the applications will be ranked based on the differentiation of points received in the following categories by order of priority: • Total Program Need • Program Design • Match Committed within Application How to Apply for CHIP $$

32. Application Submission • Send original and 3 copies • Photographs (Optional) How to Apply for CHIP $$

33. Mailing Address • Mail applications to: CHIP Program Manager Office of Special Housing Initiatives Georgia Department of Community Affairs 60 Executive Park South, N.E. Atlanta, Georgia 30329-2231 How to Apply for CHIP $$

34. Application Schedule • Don’t forget your Application Fee Payable to GHFA • Application Due: December 15, 2012 • Funding Selections Announced by March 16, 2012 How to Apply for CHIP $$

35. Thank You! • CHIP Contacts: • Carmen Chubb, Assistant Commissioner for Housing, carmen.chubb@dca.ga.gov, 404-679-0607 • Don Watt, Director, Office of Special Housing Initiatives, don.watt@dca.ga.gov, 404-679-0660 • Michelle Lewis, CHIP Program Manager, michelle.lewis@dca.ga.gov, 404-679-0659 • Kay Garrison, Program Consultant, kay.garrison@dca.ga.gov, 404-679-0573 • Kawanna Greenleaf, Housing Development Coordinator, kawanna.greenleaf@dca.ga.gov, 404-679-0680 How to Apply for CHIP $$

36. Questions? How to Apply for CHIP $$