Section 202/811Capital Advance Programs Basic Program Requirements
Basic Program RequirementPurpose To expand the supply of supportive housing for the very low-income elderly (202) and for very low-income persons with disabilities (811) 202: Elderly, 62 yrs old & over, including frail elderly
Basic Program RequirementPurpose 811: 18 yrs old & over with one or more of the following: • Chronic Mental Illness • Physical Disability • Developmental Disability
Basic Program Requirements What Funding Does HUD Provide?
FY 2007 Appropriations • Section 202 • $742,000,000 (subject to 1%rescission) • $591.5 million for new units, amendments and PRAC renewal • $51.6 million for Service Coordinator & CHSP • $24.8 million for ALCP • $20 million for Section 202 Demonstration Planning Grant Program • $400,000 transferred to Working Capital Fund
FY 2007 Appropriations • Section 811 • $239,000,000 (subject to 1%rescission) • $138.8 million for new units, amendments & PRAC renewals • $83.3 million for tenant-based assistance (under PIH) • $400,000 transferred to Working Capital Fund
Section 202/811 Allocations 202 • $431.5 million • approximately 3,667 units 811 $88.3 million • approximately 790 units FY07 202/811 funds must be obligated by 9/30/10 and fully disbursed by 9/30/15
HUD Funding Types of funds: Capital Advance • Covers dev./construction costs • No repayment required if proj. remains available for eligible program residents for 40 yrs
HUD Funding Types of funds: Project Rental Assistance • Rental assistance that covers difference between proj.’s operating expenses & tenant payments • Initial term is 3 yrs
Basic Program Requirements Who Can Apply?
Section 202 Private nonprofit (incl. Faith-Based Orgs) Nonprofit Consumer Cooperative 501 (c)(3) or (c)(4) IRS tax exemption for ALL Sponsors Public entity or instrumentality ineligible Sponsor (Applicant) Eligibility - Type of Organization
Sponsor (Applicant) Eligibility • Section 811 • Nonprofit with IRS tax exemption under 501(c)(3) (incl. Faith-Based Orgs) • Public entity eligible if it has • 501(c)(3)
Prohibited Relationships • Conflicts/Identities of Interest are prohibited - Apply to Sponsor/Owner & their Board Members & Officers - Development Team Members
Permissible Relationships • Sponsor can be Managing Agent or Consultant • Nonprofit affiliate of Sponsor can be Managing Agent **Note: No more than 2 paid officers/directors from the Sponsor/affiliate board can be on the Owner’s board & they must be non-voting
Permissible Relationships (cont’d) • Consultant can be Managing Agent • Sponsor must sign HUD-92041, Sponsor Conflict of Interest Resolution • Refer to Sec. 891.130 of 202/811 regs
Basic Program Requirements What types of Structures are Eligible?
Section 202 Independent Apartment units Efficiencies & 1 Bedrooms for residents only Up to a 2-Bedroom limited to a res. manager, if proposed Group Homes are ineligible Eligible Structure Types
Eligible Structure Types • Section 811 • Independent Living Projects (ILPs) • containing indiv. apt. units • Any size unit, except 3 Bedrooms & • larger limited to families NOT • unrelated individuals • Up to a 2-bedroom unit for a res. • manager, if proposed
Eligible Structure Types (Sec. 811 Only) Condominium units • Same as ILP units • Cannot purchase separate unit for resident manager Group Homes • Minimum 2 residents and maximum 6 residents allowed • 1 Bedrm unit for res. mgr. permitted • 2 GHs cannot be located next to each other
Basic Program Requirements Ineligible Activities
Ineligible ActivitiesSections 202 and 811 • Nursing homes, infirmaries and medical facilities • Transitional housing • Mobile Homes • Intermediate care facilities • Assisted living facilities • Community centers • Headquarters for organizations for the elderly or persons with disabilities
Ineligible Activities Section 202 and 811 (con’t) • Refinancing of Sponsor-owned facilities without rehabilitation • Housing that you currently own or lease that has been occupied by elderly persons (202); or • Housing that you currently own or lease that has been occupied by persons with disabilities for longer than one year prior to the application deadline date (811)
Ineligible Activities Section 202 and 811 (con’t) • Non-housekeeping accommodations (e.g., central dining but without private kitchens and/or bathrooms in the residential units). • Supportive Services (Section 811) • Sheltered workshops and centers for persons with disabilities (Section 811)
Basic Program Requirements Supportive Services
Supportive Services ** Acceptance of Services cannot be a condition of occupancy. • Funding: • 202: PRAC up to $15 per unit per month & for svc coordinator in project serving primarily frail elderly. • 811: from outside sources.
Changes Applicable to Both 202/811 Exhibit 3(l)/811 & 3(j)/202, Efforts in Removing Regulatory Barriers to Affordable Housing, was revised to clarify that the exhibit is optional. To receive up to 2 pts., Form HUD-27300 must be submitted and must include the necessary URL references or other documentary evidence.
Changes Applicable to Both 202 and 811 Exhibit 3(m)/811 & 3(k)/202, Section 3 Requirements, was revisedto clarify that Section 3 goals should expand training and employment opportunities for low and very low-income persons as well as business concerns in the area where the project is to be located.
Changes Applicable to Both 202 and 811 • The note section for Exhibit 4(d)(iv), URA Requirements, was revised to clarify that a certification is not sufficient to meet the exhibit requirement. • Evidence must be submitted in order to meet the exhibit requirement
Changes Applicable to Both 202 and 811 • Exhibit 6(b)(iii), Amendment Funds, was revised to include the amount of amendment funds.
Changes Applicable to Both 202 and 811 • Exhibit 7(d)/811, Relocation, was revised to identify all persons who were required to move from the site within the past 12 months.
Changes Applicable to Both 202 and 811 • Exhibit 7(d)/202, Relocation, was revised to request that the Sponsor address the reason for the move from the site within the past 12 months.
Changes Applicable to Both 202 and 811 • Exhibit 7(e)/202 and Section VI.B.2/811, Relocation, now state the Sponsor must indicate that all persons occupying the site were issued the appropriate General Information Notice and advisory services information. • This must be done either at the time the option to acquire the property was executed or at the time the application was submitted.
Changes Applicable to Both 202 and 811 • Exhibit 8(k)/811 & 8(j)/202 (Form HUD 27300, Questionnaire for HUD’s Initiative on Removal of Regulatory Barriers) has been removed. • The questionnaire is now located at Exhibit 3(l)/811 and 3(j)/202
Changes Applicable to Both 202 and 811 • Sponsors must undertake and submit a Phase I ESA in accordance with ASTM Standard E 1527-05, as amended • must be completed or updated no earlier than 180 days prior to the application deadline date
Changes Applicable to Both 202 and 811 An application with a Phase I that is: not properly updated; does not use the format specified at Appendix X4 of ASTM Standard E 1527; prepared in accordance with an older version of ASTM Standard E 1527 Will be technically rejected
Changes Applicable to 811 Changes Tied to Rating Factors: 2 pts Increase to RF 1: • Section 811 from 28 pts. to 30pts. • Sub RF 1.a., Sponsor’s experience, increased from 13 pts to 15 pts
Changes Applicable to 811 Changes Tied to Rating Factors (con’t): 3 pts Decrease to RF 3: Section 811 from 42 to 40 pts. Sub RF 3.c., The suitability of the site for promoting a greater choice of housing opportunities for minorities and persons with disabilities and affirmatively furthering fair housing, reduced from 10 pts. To 8 pts.
Changes Applicable to Both 202 and 811 Changes tied to Rating Factors (con’t): Sub-rating Factor 3c.(2)(a) was revised to clarify that the neighborhood’s percentage of persons of a particular racial or ethnic minority is at least 20 percentage points higher than the percentage of that particular racial or ethnic minority in the housing market area.
Changes Applicable to Both 202 and 811 Changes tied to Rating Factors (con’t): Sub-rating Factor 3c.(2)(b) was revised to clarify that the neighborhood’s total percentage of minority persons is at least 20 percentage points higher than the total percentage of minorities for the housing market area.
Changes Applicable to Both 202 and 811 Curable Deficiencies Form HUD 96011, Facsimile Transmittal & Form HUD 2994-A, You Are Our Client Grant Application Survey (optional) have been added to the list of curable deficiencies SF 424, Application for Federal Assistance is no longer a curable item.
Changes Applicable to both 202 and 811 The Development Cost Limits have been increased to match the Section 221 (d)(3) cost limits.
Changes Applicable to 202 Development Cost Limits for Non-elevator structures $45,507 per family unit w/o a bedroom $52,470 per family unit w/1 bedroom $63,279 per family unit w/2 bedrooms
Changes Applicable to 202 Development Cost Limits for Elevator structures $47,890 per family unit w/o a bedroom $54,897 per family unit w/1 bedroom $66,755 per family unit w/2 bedrooms
Changes Applicable to 811 Development Cost Limits for Non-elevator structures $45,507 per family unit w/o a bedroom $52,470 per family unit w/1 bedroom $63,279 per family unit w/2 bedrooms $80,998 per family unit w/3 bedrooms $90,235 per family unit w/4 bedrooms
Changes Applicable to 811 Development Cost Limits for elevator structures $47,890 per family unit w/o a bedroom $54,897 per family unit w/1 bedroom $66,755 per family unit w/2 bedrooms $86,358 per family unit w/3 bedrooms $94,795 per family unit w/4 bedrooms
Changes Applicable to 811 Development Cost Limits for Group Homes: Res. Physical/Dev Chronic Mental Ill. 2 $172,303 $166,325 3 $185,287 $178,860 4 $198,273 $189,995 5 $211,257 $201,130 6 $224,228 $212,265
Section 202/811 Capital Advance Program NOFA Process
Application • No Application Kit • Download application, instructions, forms & copies of Gen. Sec. & Program NOFA from: www.grants.gov/applicants/apply_for_grants.jsp • Need Funding Opportunity No. (FR-5100-N-07/202 & FR-5100-N-05/811) or CFDA No. (14.157/202 & 14.181/811)
Application • www.hud.gov/offices/adm/grants/fundsavail.cfm OR • Order from NOFA Information Center at: • (1-800) HUD-8929 OR • (1-800) HUD-2209 TTY
Application • READ, READ & READ AGAIN • General Section of the SuperNOFA • Program NOFA