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Overview CPP Housing Component

Overview CPP Housing Component. Cameo Lane FNRC. DDS Housing Initiative. The development of affordable, accessible homes is critical to DDS’ goal to expand opportunities for consumers to live in integrated community settings. Guiding Principles “Buy It Once”

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Overview CPP Housing Component

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  1. OverviewCPPHousing Component Cameo Lane FNRC

  2. DDS Housing Initiative The development of affordable, accessible homes is critical to DDS’ goal to expand opportunities for consumers to live in integrated community settings. Guiding Principles • “Buy It Once” • Separation of ownership from service delivery • Restricted use through long-term deed restrictions

  3. What is CPP Housing? The Community Placement Plan (CPP) is an integral part of DDS’ efforts to implement Olmstead v. LC for individuals with complex needs. The RCs CPP Housing is driven by housing needs identified in the IPP solely for: • individuals who will move from the developmental centers • individuals at risk of moving into a developmental center

  4. CPP Timeline Regional centers may submit CPP proposals annually. • September - DDS issues Housing Guidelines for proposals • November - RC prepares and submits proposal to DDS • December - DDS reviews proposals and makes a determination of conditional approval • July – CPP housing implementation contingent on passage of the State budget

  5. Uses of Funds (see Appendix 1 of the Housing Guidelines for more detail) Allowable Expenses • Pre-development • Acquisition • New construction • Renovation/rehabilitation • Development costs

  6. Uses of Funds (cont’d) Allowable Expenses (cont’d) • For either a single-family or multi-family project, the total cost includes: • purchase price • down payment • equity financing (e.g. tax credit funds) • renovation/rehabilitation costs

  7. Uses of Funds (cont’d) Allowable Expenses (cont’d) • For a multi-family project the total cost is computed only for the units that will be used for CPP placements.

  8. Uses of Funds (cont’d) Non-allowable expenses • Purchase or improvement of real property to be owned by a consumer or family. • Purchase of real property for which another funding source is available or to supplant existing funding. • Purchase of real property owned by the regional center. • Ancillary costs not associated with the production of housing.

  9. Role of the RC • Prepares and submits proposal to DDS; RC is the ONLY entity that may apply for CPP funds. • Provides direction and oversight to the project development team so that the housing is developed consistent with the approved CPP housing plan and guidelines. • Submits quarterly progress reports to DDS during development, and an annual report after completion of the project.

  10. Pre-Screening Criteria • RC has satisfactorily completed any prior CPP-funded housing projects. • RC has demonstrated satisfactory progress, including timely submission of quarterly reports and required documents, on any prior CPP-funded housing projects. • The proposed housing is consistent with the needs of consumers residing in the developmental centers or requiring deflection.

  11. Steps to Developing a CPP Proposal • Proposal Submission • Required Elements • Narrative Description • Budget • Implementation Plan • Organizational Documentation • NPO/Development Team

  12. Proposal Submission Process;Proposal Content Required Elements: • 75% of the CPP units must be for individuals exiting a developmental center • 25% may be used for deflection from a developmental center • CPP funds may not exceed 25% of the total cost of a proposed project

  13. Proposal Submission Process;Proposal Content Required Elements (cont’d): • Demonstrate a separation of property ownership from the delivery of services and supports. • Property must be owned by an NPO selected by the RC.

  14. Proposal Submission Process; Proposal Content Narrative Description • Type of housing – single-family, multi-family • Number of CPP consumers served at each property • Services to be provided • Target population • Description of neighborhood • Project type – new construction, acquisition, rehabilitation/renovation

  15. Proposal Submission Process;Proposal Content Budget • Sources and uses of funds • Sources of leveraged funds • Ongoing operating expenses • If CPP funds are reimbursed at permanent loan closing, NPO must describe how those funds will be reused for future affordable housing projects

  16. Proposal Submission Process;Implementation Plan • Proposed Implementation Plan • Sequenced activities necessary for project completion • Activities specific to each project site • Projected completion date for each property

  17. Proposal Submission Process; Organizational Documentation The regional center will obtain and submit the following documentation for the NPO: • RC vendor approval letter • IRS 501(c)(3) letter • Board of Equalization (BOE) Organizational Clearance Certificate for the corporation in connection with the project property. • Statement of Good Standing from Secretary of State of California • Current Articles of Incorporation

  18. Proposal Submission Process; Organizational Documentation (cont’d) • Current by-laws • A list of current officers • A corporate resolution authorizing non-profit organization signatory to sign documents • List of completed projects similar in nature to the proposed project • Last 3 years' audited financial statements

  19. Proposal Submission Process; NPO / Development Team • The development team consists of: • RC • NPO and project staff • Developer • Consultant • Memo of Understanding or contract that shows the shared mission of development of affordable housing restricted for the use of persons with developmental disabilities. • Independence in decision-making powers for both the RC and the NPO. • Clearly demonstrable absence of conflict of interest, be in compliance with Title 17 §§54520 &54522.

  20. Proposal Submission Process; Experience of NPO NPO must have the background experience and capacity to effectively complete the project. • Experience can come from the organization, Executive Director, Key Staff, Board of Directors, or use of a housing consultant • Completion of previous project similar to the CPP proposal. • History of effective property management of similar properties.

  21. Proposal Submission Process; Capacity of NPO • Understanding of housing financing. • Knowledge of local area housing resources. • Working knowledge of local housing authority and housing development programs. • Ability to network for additional funding sources to complete the funding package for the entire project.

  22. Conditional Approval DDS issues a Letter of Conditional Approval to the regional center if the proposal meets the requirements contained in the Housing Guidelines. • This authorizes the regional center to implement the approved proposal • Proceed with the acquisition of property • DDS will assign a project number for tracking purposes

  23. Project Milestones • Milestone 1: Loan Closing and Property Acquisition • Final implementation plan, including any funding commitment letters • Evidence of site control • Evidence of property purchase, including an executed, recorded deed of trust and regulatory agreement • Evidence of application for property tax exemption to County Tax Assessor

  24. Project Milestones • Milestone 2: Recordation of Notice of Completion or Issuance of Certificate of Occupancy • Final Sources and Uses of Funds (budget) • Certificate of Occupancy (Notice of Completion, if rehabilitation) • Evidence of licensing application, if applicable

  25. Project Milestones • Milestone 3: Conversion of Construction Financing to Permanent Financing with an Approved Construction Cost Audit • Executed, long-term lease agreement (NPO and service provider) • Executed, property management agreement • Property tax exemption (if not provided sooner) • Reconciled Sources and Uses of Funds (budget) • Approved construction cost audit • Final licensing approval, if applicable • Evidence of property insurance

  26. Examples of CPP Projects Single-Family Home: • FNRC Bechelli Lane

  27. Examples of CPP Projects • CPP project of FNRC • Construction: 2,400 sq ft 4 bedroom, two bath home • Need: Accessible and open floor plan for medically fragile individuals • Leveraged Funding: City of Redding, Redevelopment Agency, Guild Mortgage

  28. Examples of CPP Projects Single-Family Home: • FNRC Russell Street

  29. Examples of CPP Projects • CPP project of FNRC • Purchased: Main house is 950 sq ft 2 bedroom, 1 bath. Cottage is 600 sq ft 1 bedroom, 1 bath. • Need: Quiet and cozy environment for individuals with autism and sensory issues. Home is modified to prevent property damage. • Leveraged Funding: AccessHome

  30. Examples of CPP Projects Single-Family Home: • FNRC Cedars Road

  31. Examples of CPP Projects • CPP project of FNRC • Purchased:1,675 sq ft 3 bedroom, 1 bath with barn on 1.2 acres • Need:Open floor plan for supervision of individuals with severe behaviors. Large yard provides buffer for neighbors. • Leveraged Funding: AccessHome

  32. Examples of CPP projects Multi-Family Home: • CVRC Encina Supportive Services Tri-Plex

  33. Encina Supportive Services Tri-Plex • CPP project of CVRC • Purchased: two 2 bedroom units and one 1 bedroom unit • Need: Non-ambulatory accessible outside and interior spaces designed for wheelchair accessibility • Leveraged Funding: Foundation Trust, City of Visalia and Tulare County Housing Authority

  34. For more information To request technical assistance for CPP Housing questions, contact: Yvonne McCuistion Tucker Chief DDS Services and Supports Section 916-654-1571 A copy of this presentation, the Housing Guidelines, and samples of the forms used can be found On the web, at: http://www.dds.ca.gov/AH/CPP.cfm

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