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HomeMy WebLinkAbout2021 HOME Proposal Packet - fillable2021 HOME Proposal c/5-8-20 2021 COUNTY OF HAWAI I HOME INVESTMENT PARTNERSHIPS PROGRAM PROPOSAL PACKET TABLE OF CONTENTS INTRODUCTION................................................... 1 I.GENERAL INFORMATION FOR APPLICANTS........................ 6 A.ELIGIBILITY OF THE APPLICANTS ......................... 6 B.FORMS OF ASSISTANCE ................................... 6 C.ELIGIBLE COSTS ........................................ 7 D.PROHIBITED ACTIVITIES ................................. 8 E.MATCHING FUNDS REQUIREMENT ............................ 9 F.ELIGIBLE ACTIVITIES .................................. 10 II.RENTAL HOUSING ACTIVITIES................................ 11 A.HOME INVESTMENT ...................................... 11 B.INCOME LIMITS ........................................ 11 C.OCCUPANCY REQUIREMENTS ............................... 14 D.PROPERTY STANDARDS ................................... 16 E.PROPERTY VALUE. ...................................... 17 F.INITIAL AFFORDABILITY ................................ 17 G.PERIOD OF AFFORDABILITY .............................. 17 H.TARGETING OF HOME FUNDS .............................. 18 III.HOMEOWNERSHIP ACTIVITIES ............................... 22 A.HOME INVESTMENT ...................................... 22 B.INCOME LIMITS ........................................ 22 C.OCCUPANCY REQUIREMENTS ............................... 24 D.PROPERTY STANDARDS ................................... 24 E.PROPERTY VALUE ....................................... 26 F.INITIAL AFFORDABILITY ................................ 26 G.LONG-TERM AFFORDABILITY .............................. 26 H.TARGETING OF HOME FUNDS .............................. 28 I.OTHER REQUIREMENTS ................................... 28 IV.TENANT-BASED RENT ASSISTANCE............................. 29 A.HOME INVESTMENT ...................................... 29 B.INCOME LIMITS/ELIGIBLE BENEFICIARIES. ................ 30 C.OCCUPANCY REQUIREMENTS ............................... 32 D.PROPERTY STANDARDS ................................... 32 E.PROPERTY VALUE ....................................... 32 2021 HOME Proposal c/5-8-20 F.INITIAL AFFORDABILITY ................................ 32 G.LONG-TERM AFFORDABILITY .............................. 32 H.TARGETING OF HOME FUNDS .............................. 32 I.OTHER REQUIREMENTS ................................... 32 V.THE COUNTY SELECTION SYSTEM.............................. 37 A.THRESHOLD FACTORS .................................... 37 1.ELIGIBLE COST ........................................ 37 2.FORMS OF ASSISTANCE .................................. 37 3.ELIGIBLE ENTITIES .................................... 37 4.MATCHING REQUIREMENTS ................................ 38 5.ELIGIBLE ACTIVITY .................................... 38 6.PROJECT SCHEDULE ..................................... 38 7.CONSISTENCY WITH THE COUNTY CONSOLIDATED PLAN ........ 38 8.RELOCATION PLAN ...................................... 40 9.ENVIRONMENTAL CONSIDERATIONS ......................... 40 10. SITE SELECTION....................................... 40 11. PROJECT FUNDING...................................... 40 B.PRIORITY FACTORS ..................................... 41 PROJECT EVALUATION................................... 41 APPLICANT EVALUATION................................. 43 RATING CRITERIA...................................... 45 C.FINAL SELECTION ...................................... 49 VI.PROPOSAL REQUIREMENTS.................................... 50 A.GENERAL .............................................. 50 B.SUBMISSION DATES ..................................... 50 C.PROPOSAL REQUIREMENTS ................................ 50 D.PROPOSAL SCHEDULE .................................... 50 VII. APPENDIX A. HOME REGULATIONS - Part 92 B. HOME PROPOSAL FORM EXHIBIT 1 – PROJECT INFORMATION..................... P-5 EXHIBIT 2 - EXTENT AND SERIOUSNESS OF THE IDENTIFIED NEED ........................................ P-21 EXHIBIT 3 - CONSOLIDATED PLAN PRIORITIES .......... P-22 EXHIBIT 4 – NEED FOR HOME FUNDS.................... P-23 EXHIBIT 5 – RESULTS TO BE ACHIEVED................. P-24 EXHIBIT 6 – BUDGET AND FUNDING..................... P-26 EXHIBIT 7 – LEVERAGING/MATCHING.................... P-31 2021 HOME Proposal c/5-8-20 EXHIBIT 8 – PROJECT SCHEDULE....................... P-32 EXHIBIT 9 – SITE SELECTION STANDARDS INFORMATION ... P-33 EXHIBIT 10 – ENVIRONMENTAL CONSIDERATIONS.......... P-36 EXHIBIT 11 – ADDITIONAL ACTIONS.................... P-38 EXHIBIT 12 – COMPLIANCE WITH FEDERAL OVERLAY STATUTES .................................... P-39 EXHIBIT 13 – PROJECT MANAGEMENT.................... P-40 EXHIBIT 14 – PAST PERFORMANCE...................... P-41 EXHIBIT 15 – DISPLACEMENT/RELOCATION/ACQUISITION... P-42 EXHIBIT 16 – APPLICANT INFORMATION................. P-44 EXHIBIT 17 - CERTIFICATION OF AUTHORIZING OFFICIAL/RESOLUTION ......................... P-45 2021 HOME Proposal 1 c/5-8-20 INTRODUCTION The purpose of this HOME Proposal Packet is to provide information and guidance to the applicant who is considering applying for the U.S. Department of Housing and Urban Development’s (HUD) HOME Investment Partnerships (HOME) Program, through the County of Hawai i Office of Housing and Community Development (OHCD). The HOME Program was created under Title II (the HOME Investment Partnerships Act) of the National Affordable Housing Act of 1990. The purpose of the HOME Program is outlined in Appendix A. The following is a brief outline of the HOME Program’s purposes: 1.To expand the supply of decent, safe, sanitary, and affordable housing, with primary attention to rental housing, for very low-income and low-income Americans; 2.To mobilize and strengthen the abilities of States and units of local government throughout the United States to design and implement strategies for achieving an adequate supply of decent, safe, sanitary and affordable housing; 3.To provide participating jurisdictions, on a coordinated basis, with the various forms of Federal housing assistance, including capital investment, mortgage insurance, rental assistance, and other Federal assistance needed. To make new construction, rehabilitation, substantial rehabilitation, and acquisition of such housing feasible; 4.To make housing more affordable for very low-income and low-income families through the use of tenant-based rental assistance; and 5.To extend and strengthen partnerships among all levels of government and the private sector, including for-profit and non-profit organizations, in the production and operation of affordable housing. The State of Hawai i, through the Hawai i Housing Finance and Development Corporation (HHFDC), anticipates it will receive approximately $2,900,000 for the 2021 HOME Program allocation for the three neighbor island counties of Hawai i, Maui and Kauai. Based on a 3 year rotation of HOME funds, the County estimates that the 2021 HOME allocation will be approximately 2021 HOME Proposal 2 c/5-8-20 $2,900,000. The HHFDC is expected to retain approximately $300,000 from the 2021 HOME Program for its administration of the HOME program. Out of the County of Hawai i’s allocation of $2,900,000 the County anticipates utilizing $2,300,000 for HOME projects, $450,000 for projects with Community Housing Development Organizations (CHDO) (see Appendix A for the definition), and $150,000 for the administration of the County’s HOME Program. COUNTY OF HAWAI I 2021 HOME CATEGORIES ALLOCATION HOME Projects $2,300,000 CHDO Projects $450,000 OHCD Administration $150,000 TOTAL $2,900,000 The County of Hawai i has designated the OHCD as the agency to administer the HOME Program. The OHCD will submit to the HHFDC a 2021 HOME Program Description for approval. The HOME Program description will include the HOME project(s) approved by the Hawai i County Housing Agency. The OHCD is seeking eligible project proposals from qualified organizations to develop and support affordable rental housing, homeownership or tenant-based rental assistance. Qualified entities are asked to submit one proposal form for each project and activity being proposed. In order to receive federal funding all applicants will be required to have a Dun and Bradstreet Data Universal Numbering System (DUNS) number and be actively registered with current information in the Central Contractor Registration (CCR) prior to applying for CDBG and HOME funding. The applicant will have to submit proof that they have a DUNS number and are actively registered in the CCR system with their project proposal packet. In order to rate and rank the project, the OHCD has developed the County Selection System. The system is intended to ensure that the projects submitted to the HHFDC are eligible for funds and can be implemented in a timely manner as well as to avoid the problems and mistakes the OHCD has experienced with past projects. The OHCD will recommend, for Hawai i County Housing Agency approval, the projects to be included in its 2021 Action Plan of the County’s Consolidated Plan. For the purpose of preparing 2021 HOME Proposal 3 c/5-8-20 its recommendation, all decisions as to timeliness, eligibility, adequacy of the proposal, ranking and rating will be made by the OHCD. Please read all the enclosed program materials before you prepare the proposal. In order to be considered for HOME funds, all eligible applicants will be required to submit a complete proposal that satisfies the threshold factors established by HUD/HHFDC and the County before the OHCD will rank and rate the proposal. However, since the demand for grants far exceed the available funds, the County Selection System is designed to ensure that the projects are fairly and equitably reviewed and rated. This selection system establishes a specific range of points for various elements of the project; the OHCD will rate and rank the projects accordingly. To be evaluated fairly, the applicant must provide appropriate, quantifiable information in a manner that will enable the OHCD to score the project on each rating element. This proposal packet has been prepared to assist the applicant by explaining the review system and providing information and guidance on how to prepare the proposal. The proposal packet provides the following information: Explanation of HOME Program requirements. Explanation of how, need, benefit and performance judgments and the selection system assessments will be made. Description of the documentation applicants must submit to substantiate the data, qualifications and other necessary requirements. Description of the review and rating process that will be used. Additional Federal regulations applicable to applicants receiving HOME funding. IMPORTANT NOTICE: The time frames established in the proposal process are firm. At the close of the proposal submittal period, no further information will be accepted by the OHCD, although clarification of information will be allowed, or additional information may be 2021 HOME Proposal 4 c/5-8-20 requested as required to comply with the County’s Consolidated Plan. It is, therefore, important that your proposal is complete, factual, and contains the required supporting data. If the proposal is incomplete, the OHCD will not review the proposal. All original bounded (PLEASE NO SPIRAL BINDING) project proposal and two (2) copies must be received no later than 4:30 p.m., November 9, 2020, at the: Hilo Office of Housing and Community Development 1990 Kino ole Street, Suite 102 Hilo, Hawai i 96720 Phone No. (808)961-8379 or Kona Office of Housing and Community Development West Hawai i Civic Center 74-5044 Ane Keohokalole Highway Kailua-Kona, Hawai i 96740 Phone No. (808)323-4305 Proposals submitted after the date and time stamp deadline or insufficient copies of the proposal will not be accepted and therefore not rated for funding. After a proposal is approved for funding, a HOME contract will be prepared. This contract is the legal document that governs the administration of the project and includes, but is not limited to: The amount of HOME funds to be provided; A detailed budget for the use of HOME funds; A detailed statement of work, including activity description; area of services; work schedule; work revisions; and records and reports; The general and special terms and conditions associated with the award; and A specified contract termination date. 2021 HOME Proposal 5 c/5-8-20 The approved proposal becomes part of the contract. The HOME policy precludes the disbursement of any funds until the environmental assessment is completed, and the contract is fully executed. The OHCD will monitor all expenditures and activities associated with each funded project. This includes site visits and desk monitoring. All participants are required to report on the status of their progress monthly. Through these reports, the OHCD ensures that the money is spent within the regulations. (Appendix H details the record keeping requirements for the HOME Program.) In addition, effective July 1996, all applicants selected for HOME funding are required to obtain a tax clearance certificate from the State Department of Taxation and the Internal Revenue Service (IRS) prior to entering into an agreement with the County of Hawai i and prior to submitting the final payment request. 2021 HOME Proposal 6 c/5-8-20 I.GENERAL INFORMATION FOR APPLICANTS A.ELIGIBILITY OF THE APPLICANTS In general, public agencies, private non-profit organizations, developers, owners, community housing development organizations (as defined by HUD, see Appendix A), or other private organizations are eligible to utilize HOME funds. RELIGIOUS ORGANIZATION (92.257 – See Appendix E) – HOME funds may not be provided to primarily religious organizations, such as churches, for any activity including secular activities. In addition, HOME funds may not be used to rehabilitate, or construct housing owned by primarily religious organizations or to assist primarily religious organizations in acquiring housing. However, HOME funds may be used by a secular entity to acquire housing from a primarily religious organization; and a primarily religious entity may transfer title to property to a wholly secular entity and the entity may participate in the HOME Program in accordance with the requirements of this part. The entity may be an existing or newly established entity, which may be an entity established, but not controlled, by the religious organization. The completed housing project must be used exclusively by the owner entity for secular purposes, available to all persons regardless of religion. In particular, there must be no religious or membership criteria for tenants of the property. B.FORMS OF ASSISTANCE (92.205B) HOME funds may be used as equity investments, interest-bearing loans or advances, non interest- bearing loans or advances, interest subsidies consistent with the purposes of this part, deferred payment loans, grants, or other forms of assistance as approved by HUD/HHFDC. HOME funds may be used to guarantee loans made by lenders. The amount of the loan guarantee account must be based on a reasonable estimate of the default rate on the guaranteed loans, but under no circumstances may the amount on deposit exceed 20% of the total outstanding principal amount guaranteed, 2021 HOME Proposal 7 c/5-8-20 except that the account may include a reasonable minimum balance. While loan funds guaranteed with HOME funds are subject to all HOME requirements, funds which are used to repay guaranteed loans are not. C.ELIGIBLE COSTS (92.206) The applicant should consult the federal regulations Sections 92.206 to 92.209 (Appendix D) for the entire list of the eligible costs. The major categories for the eligible costs are: 1.Development hard costs defined as the actual cost of constructing or rehabilitating housing; 2.The cost to refinance existing debt secured by housing that is being rehabilitated with HOME funds; 3.Cost of acquiring improved or unimproved real property, including acquisition by homebuyer; 4.Related soft costs defined as other reasonable and necessary costs incurred by the owner and associated with the financing or development (or both) of new construction, rehabilitation, or acquisition of housing assisted with HOME funds; 5.CHDO project specific assistance under Section 92.301 (see Appendix F); 6.Relocation costs defined as costs of relocation payments and other relocation assistance to persons displaced by the project; 7.Costs related to payment of loans. If HOME funds are not used to directly pay a cost specified in this section, but are used to pay off a construction loan, bridge financing, or guaranteed loan, the payment of principal and interest for such loan is an eligible cost if the loan was used for eligible costs specified in 92.206 and the HOME assistance is part of the original financing for the project and the project meets the requirement of this part; and 2021 HOME Proposal 8 c/5-8-20 8.Tenant-based rental assistance, such as rental assistance payments and security deposit payments made to provide tenant-based rental assistance for a family. D.PROHIBITED ACTIVITIES (92.214) HOME funds may not be used to: 1.Provide project reserve accounts, except as provided in Section 92.206(d)(5), or operating subsidies; 2.Provide tenant-based rental assistance for the special purposes of the existing Section 8 Program, in accordance with Section 212(d) of the Act; 3.Provide non-federal matching contributions required under any other federal program; 4.Provide assistance authorized under section 9 of the 1937 Act (annual contributions for operation of public housing); 5.Carry out activities authorized under 24 CFR Part 968 (Public Housing Modernization); 6.Provide assistance to eligible low-income housing under 24 CFR Part 248 (Prepayment of Low-Income Housing Mortgages); except that assistance may be provided to priority purchasers as defined in 24 CFR 248.101; 7.Provide assistance (other than tenant-based rental assistance or assistance to homebuyers to acquire housing previously assisted with HOME funds) to a project previously assisted with HOME funds during the period of affordability established by the County. However, additional HOME funds may be committed to a project up to one year after project completion (see 92.502) but the amount of HOME funds in the project may not exceed the maximum per unit subsidy amount established under 92.250; 2021 HOME Proposal 9 c/5-8-20 8.Pay for the acquisition of property owned by the State of Hawai i/County of Hawai i, except for property acquired by the State/County with HOME funds, or property acquired in anticipation of carrying out a HOME project; 9.Pay delinquent taxes, fees or charges on properties to be assisted with HOME funds and; 10.Pay for any cost that is not eligible under 92.206-209. E. MATCHING FUNDS REQUIREMENT (92.218-220) All applicants shall make contributions to housing that qualifies as affordable housing. The required contribution, or “MATCH,” is for every $1.00 of HOME funds spent, the required match contribution must total not less than $.25. Please refer to Appendix C for the federal regulations concerning match. The following is a very brief description of the matching requirements: 1.SOURCES OF MATCHING FUNDS – As a general rule of thumb, investments which are contributions from the state/local government or private sources will be eligible to qualify as a matching contribution. 2.ELIGIBLE SOURCES – Cash; donated construction materials or voluntary labor; value donated land or real property; value of foregone interest, taxes, fees, or charges levied by public or private entities; investments in on- or off-site improvements; proceeds from bond financing. 3.INELIGIBLE MATCH SOURCES – Federal funds and CDBG funds may not be counted towards the match, interest rate subsidy attributable to the federal tax exemption on financing or the value attributable to federal tax credits, owner equity or investment in a project, and cash or other forms of contribution from applicants for or recipients of HOME assistance or contracts, or investors who own, are working on, or are proposing to apply for assistance for a HOME- 2021 HOME Proposal 10 c/5-8-20 assisted project, except as permitted under paragraph (a)(9) of this section. F. ELIGIBLE ACTIVITIES (92.205a) HOME funds may be used to provide incentives to develop and support the following: 1.RENTAL HOUSING – through the acquisition, new construction, reconstruction, or moderate or substantial rehabilitation of non-luxury housing with suitable amenities, including real property acquisition, site improvements, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations; 2.HOMEOWNERSHIP – through the acquisition (including assistance to homebuyers), new construction, reconstruction, or moderate or substantial rehabilitation of non-luxury housing with suitable amenities, including real property acquisition, site improvements, conversion, demolition, and other expenses, including financing costs, relocation expenses of any displaced persons, families, businesses, or organizations; and 3.TENANT-BASED RENTAL ASSISTANCE – including security deposits. The housing must be permanent or transitional housing and includes permanent housing for disabled homeless persons, and single-room occupancy housing. Please refer to 92.206 through 92.209 for the specific eligible costs. Appendix D) The following is a brief explanation of the requirements for the three eligible HOME activities. The eligibility requirements and other rules are listed to give the applicant a general idea of the requirements. For the specific requirements and regulations, the applicant should consult Appendices D and E. 2021 HOME Proposal 11 c/5-8-20 II.RENTAL HOUSING ACTIVITIES A.HOME INVESTMENT 1.MINIMUM (92.205c) - $1,000 per HOME assisted unit. 2.MAXIMUM (92.250) – The following is the maximum HOME investment per HOME assisted unit (2020). 0 bedroom - $183,934 1 bedroom - $257,508 2 bedrooms - $331,082 3 bedrooms - $441,443 4+ bedrooms - $551,803 3. MATCHING REQUIREMENT (92.218-220) For every $1.00 of HOME funds spent, the required match contribution must total not less than $.25. B.INCOME LIMITS – The chart below indicates the income limits for very low and low income households. FAMILY INCOME LIMITS (As of 07/01/2020 – Amended Annually) Household Very Low (80%) Size Income (50%) 60% Limit Low Income 1 Person $29,200 $35,040 $46,700 2 Persons 33,350 40,020 53,350 3 Persons 37,500 45,000 60,000 4 Persons 41,650 49,980 66,650 5 Persons 45,000 54,000 72,000 6 Persons 48,350 58,020 77,350 7 Persons 51,650 61,980 82,650 8+Persons 55,000 66,000 88,000 2019 Hawai i County Median Income: $75,200 2021 HOME Proposal 12 c/5-8-20 1.INCOME DETERMINATION (92.203 & 92.252) – The applicant must determine that each family is income eligible by determining the family’s annual income. a)For families who are tenants in HOME- assisted housing and not receiving HOME tenant-based rental assistance, the applicant must determine annual income by the following methods: i)Examine at least 2 months of source documents evidencing annual income; ii)Obtain from the family a written statement of the amount of the family’s annual income and family size, along with a certification that the information is complete and accurate. The certification must state that the family will provide source documentation upon request; and iii)Obtain a written statement from the administrator of a government program under which the family receives benefits, and which examines, each year, the annual income of the family. b)When determining whether a family is income eligible, one of the following definitions of annual income must be used: i)Annual income as defined at 24 CFR 5.609, except when determining the income of a homeowner for an owner- occupied rehabilitation project, the value of the homeowner’s principal residence may be excluded from the calculation of Net Family Assets; or ii)Adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual Federal annual income tax purposes. 2021 HOME Proposal 13 c/5-8-20 c)Although the applicant may use either of the definitions of annual income permitted above to calculate adjusted income, it must apply exclusions from income established at 24 CFR 5.611. The HOME rents for very-low income families established under 2.252(b)(2) are based on adjusted income. d)The applicant must calculate the gross amount of income anticipated by all adults in the household during the twelve (12) months following the effective date of the income determination. Annual income shall include income from all family members. Income or asset enhancement derived from the HOME-assisted project shall not be considered in calculating annual income. The applicant is not required to re-examine the family’s income at the time the HOME assistance is provided, unless more than six months has elapsed since the applicant determined that the family qualified as income eligible. The income of each tenant must be determined initially in accordance with 92.203(a)(1)(i). In addition, each year during the period of affordability the project owner must re-examine each tenant’s annual income in accordance with one of the options in 92.203 selected by the applicant. An owner of an multi-family project with an affordability period of 10 years or more who re-examines tenant’s annual income through a statement and certification in accordance with 92.203(a)(1)(ii), must examine the income of each tenant, in accordance with 92.203(a)(1)(i), every sixth year of the affordability period. Otherwise, an owner who accepts the tenant’s statement and certification in accordance with 92.203(a)(1)(ii) is not required to examine the income of tenants in multi-family or single-family projects unless there is evidence that the tenant’s written statement failed to completely and accurately state 2021 HOME Proposal 14 c/5-8-20 information about the family’s size or income. C.OCCUPANCY REQUIREMENTS (92.252) The HOME-assisted units in a rental housing project must be occupied only by households that are eligible as low-income families and must meet the requirements of 92.252 to qualify as affordable housing. 1.RENT LIMITATION (92.252a). HUD provides the following maximum HOME rent limits. The maximum HOME rents are the lessor of: a) The fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111; or b) A rent that does not exceed 30 percent of the adjusted income of a family whose annual income equals 65 percent of the median income for the area, as determined by HUD. HOME RENTS LIMITS (07/01/20 – Amended Annually) UNIT TYPE RENT LIMIT Efficiency $ 929 1 Bedroom 996 2 Bedrooms 1,197 3 Bedrooms 1,374 4 Bedrooms 1,514 5 Bedrooms 1,651 6 Bedrooms 1,789 2.ADDITIONAL RENT LIMITATIONS (92.252b). In rental projects with five or more HOME-assisted units, twenty (20) percent of the HOME-assisted units must be occupied by very low income families and meet one of the following rent requirements (See Appendix B): a) The rent does not exceed 30% of the annual income of a family whose income equals 50% of the median income for the area, as determined by HUD, with adjustments for smaller and larger families. HUD provides the HOME rent limits which include average 2021 HOME Proposal 15 c/5-8-20 occupancy per unit and adjusted income assumptions. However, if the rent determined under this paragraph is higher than the applicable rent under (a) of this section, the maximum rent for units under this paragraph is that calculated under paragraph (a); OR b) The rent does not exceed 30% of the family’s adjusted income. If the unit receives federal or state project-based rental subsidy and the very low-income family pays as a contribution towards rent not more than 30% of the family’s adjusted income, the maximum rent (i.e., tenant contribution plus project-based rental subsidy) is the rent allowable under the federal or state project-based rental subsidy program. HOME RENTS LIMITS (07/01/20 – Amended Annually) LOW HOME HIGH HOME UNIT TYPE RENT LIMIT RENT LIMIT Efficiency $ 730 $ 929 1 Bedroom 781 996 2 Bedrooms 937 1,197 3 Bedrooms 1,083 1,374 4 Bedrooms 1,208 1,514 5 Bedrooms 1,333 1,651 6 Bedrooms 1,457 1,789 3.INITIAL RENT SCHEDULE AND UTILITY ALLOWANCE (92.252d) – The County must review and approve rents proposed by the owner for units subject to the maximum rent limitations in paragraphs (a) or (b) of this section. For all units subject to the maximum rent limitations in paragraphs (a) or (b) of this section for which the tenant is paying utilities and services, the County must ensure that the rents do not exceed the maximum rent minus the monthly allowances for utilities and services. 2021 HOME Proposal 16 c/5-8-20 4.OVER-INCOME TENANTS (92.252i) – HOME-assisted units continue to qualify as affordable housing despite a temporary noncompliance caused by increases in the incomes of existing tenants if actions satisfactory to HUD are being taken to ensure that all vacancies are filled in accordance with this section until noncompliance is corrected. Tenants who no longer qualify as low-income families must pay as rent the lesser of the amount payable by the tenant under State or local law or 30% of the family’s adjusted monthly income, except that tenants of HOME-assisted units that have been allocated low-income housing tax credits by a housing credit agency pursuant to Section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42) must pay rent governed by Section 42. D.PROPERTY STANDARDS (92.251) 1.Housing that is constructed or rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion, except as provided in paragraph (b) of this section. Newly constructed housing must meet the current edition of the Model Energy Code published by the Council of American Building Officials; 2.All other HOME-assisted housing must meet all applicable state and local housing quality standards and code requirements; 3.The housing must meet the accessibility requirements at 24 CFR part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) and covered multi-family dwellings, as defined at 24 CFR 100.201, must also meet the design and construction requirements at 24 CFR 100.205, which implements the Fair Housing Act (42 U.S.C. 3601-3619); 2021 HOME Proposal 17 c/5-8-20 4.Construction of all manufactured housing must meet the Manufactured HOME Construction and Safety Standards established in 24 CFR part 3280. These standards pre-empt State and local codes covering the same aspects of performance for such housing. The applicants HOME assistance to install manufactured housing units must comply with applicable State and local laws or codes. Manufactured housing that is rehabilitated using HOME funds must meet the requirements set forth in paragraph (D)(1) of this section. 5.An owner of rental housing assisted with HOME funds must maintain the housing in compliance with all applicable State and local housing quality standards and code requirements. E.PROPERTY VALUE – Not Applicable. F.INITIAL AFFORDABILITY – See “Occupancy Requirements” G.PERIOD OF AFFORDABILITY (92.252e) The HOME-assisted units must meet the affordability requirements for not less than the applicable period specified in the table, beginning after project completion. The affordability requirements apply without regard to the term of any mortgage or the transfer of ownership. They must be imposed by deed restrictions, covenants running with the land, or other mechanisms approved by HUD, except that the affordability restrictions may terminate upon foreclosure or transfer in lieu of foreclosure. - Rehabilitation or acquisition of existing housing per unit amount of HOME funds: Under $15,000 5 years $15,000 to $40,000 10 years Over $40,000 15 years New construction or acquisition of newly 20 years constructed housing 2021 HOME Proposal 18 c/5-8-20 H.TARGETING OF HOME FUNDS (92.216a) Not less than 90% of the units assisted with HOME funds are occupied by families whose annual incomes do not exceed 60% of the median family income for the area. The remaining units (up to 10%) may be occupied by families whose annual incomes do not exceed 80% of the median family income for the area. I.OTHER REQUIREMENTS 1.LEASE REQUIREMENTS (92.253) a)LEASE TERMS (92.253a) – The lease between a tenant and an owner of rental housing assisted with HOME funds must not be for less than one year, unless by mutual agreement between the tenant and the owner. b)PROHIBITED LEASE TERMS (92.253b) – The lease may NOT contain any of the following provisions (Appendix E): Agreement to be sued Treatment of property Excusing owner from responsibility Waiver of notice Waiver of legal proceeding Waiver of a jury trial Waiver of right to appeal court decision Tenant chargeable with cost of legal actions regardless of outcome c)TERMINATION OF TENANCY (92.253c) An owner may not terminate the tenancy or refuse to renew the lease of a tenant of rental housing assisted with HOME funds except for serious or repeated violation of the terms and conditions of the lease; for violation of applicable federal, state, or local law; for completion of the transitional housing tenancy period; or for other good cause. Any termination or refusal to renew must be preceded by not 2021 HOME Proposal 19 c/5-8-20 less than 30 days by the owner’s service upon the tenant of a written notice specifying the grounds for the action. d)TENANT SELECTION (92.253d) An owner of rental housing assisted with HOME funds must adopt written tenant selection policies and criteria that: 1)Are consistent with the purposes of providing housing for very low-income and low-income families; 2)Are reasonably related to program eligibility and the applicants’ ability to perform the obligations of the lease; 3)Give reasonable consideration to the housing needs of families that would have a Federal preference under Section 6(c)(4)(A) of the 1937 Act (See 92.209c2); 4)Provide for the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; and 5)Give prompt written notification to any rejected applicant of the grounds for any rejection. e)NONDISCRIMINATION AGAINST RENTAL ASSISTANCE SUBSIDY HOLDERS (92.253(4)) – The owner cannot refuse to lease HOME-assisted units to a certificate or voucher holder under 24 CFR Part 982 – Section 8 Tenant-Based Assistance; Unified Rule for Tenant-Based Assistance under the Section 8 Rental Certificate Program and the Section 8 Rental Voucher Program or to the holder of a comparable document evidencing participation in a HOME tenant-based rental assistance program because of the status of the prospective tenant as a holder of such 2021 HOME Proposal 20 c/5-8-20 certificate, voucher, or comparable HOME tenant-based assistance document. 2. FIXED AND FLOATING HOME UNITS (92.252j) – In a project containing HOME-assisted and other units, the County may designate fixed or floating HOME units. This designation must be made at the time of project commitment. Fixed units remain the same throughout the period of affordability. Floating units are changed to maintain conformity with the requirements of this section during the period of affordability so that the total number of housing units meeting the requirements of this section remains the same, and each substituted unit is comparable in terms of size, features, and number of bedrooms to the originally designated HOME-assisted unit. 3. SITE AND NEIGHBORHOOD STANDARDS (92.202b) - New construction of rental housing must follow 24 CFR Part 983.57(e)(2)and(3) and the proposed sites for new construction units must be approved by the State’s Housing and Community Development Corporation of Hawai i. The site must meet the following site and neighborhood standards: a)The site must be adequate in size, exposure, and contour to accommodate the number and type of units proposed, and adequate utilities and street must be available to the service site; b)The site must be suitable from the standpoint of facilitating and furthering full compliance with the applicable provisions of Title VI of the Civil Rights Act of 1964, the Fair Housing Act, Executive Order 11063, and implementing HUD regulations; c)The site must not be located in an area of minority concentration, except as permitted under paragraph (b)(3)(ii) of this section, and must not be located in a racially mixed area if the project will cause a significant increase in the proportion of minority to non-minority residents in the area; 2021 HOME Proposal 21 c/5-8-20 d)The site must promote greater choice of housing opportunities and avoid undue concentration of assisted persons in areas containing a high proportion of low-income persons; e)The neighborhood must not be one which is seriously detrimental to family life or in which substandard dwellings or other undesirable conditions predominate, unless there is actively in progress in concerted program to remedy the undesirable conditions; f) The housing must be accessible to social, recreational, educational, commercial, and health facilities and services, and other municipal facilities and services that are at least equivalent to those typically found in neighborhoods consisting largely of unassisted, standard housing of similar market rents; g) Except for new construction housing designed for elderly persons, travel time and cost via public transportation or private automobile, from the neighborhood to places of employment providing a range of jobs for lower-income workers, must not be excessive. 4. SPECIAL CONDITION PROJECT SIGN All construction projects in excess of $50,000, which are undertaken using HOME Program funds, shall have a project sign (minimum 4’ x 4’) located prominently at the project site. The sign must be installed prior to construction and shall be maintained for the duration of the construction project. 5.RECORDKEEPING (92.508) – All projects are subject to the recordkeeping requirements of 92.508. 2021 HOME Proposal 22 c/5-8-20 III.HOMEOWNERSHIP ACTIVITIES A.HOME INVESTMENT 1.MINIMUM (92.205c) - $1,000 per HOME assisted unit. 2.MAXIMUM (92.250) – The following is the maximum HOME investment per HOME assisted unit (2020) 0 bedroom - $183,934 1 bedroom - $257,508 2 bedrooms - $331,082 3 bedrooms - $441,443 4+ bedrooms - $551,803 3.MATCHING REQUIREMENT (92.218-220) – For every $1.00 of HOME funds spent, the required match contribution must total not less than $.25. B.INCOME LIMITS – The chart below indicates the income limits for low income homeowners (80% of the median income). FAMILY INCOME LIMITS (As of 07/01/20) – Amended Annually) Low Income Household Size 80% of Median Income 1 Person $ 46,700 2 Persons 53,350 3 Persons 60,000 4 Persons 66,650 5 Persons 72,000 6 Persons 77,350 7 Persons 82,650 8+Persons 88,000 2020 Hawai i County Median Income - $75,200 1. INCOME DETERMINATION (92.203) – The applicant must determine that each family is income eligible by determining the family’s annual income. a)For families who are tenants in HOME- assisted housing and not receiving HOME tenant-based rental assistance, the 2021 HOME Proposal 23 c/5-8-20 applicant must determine annual income by the following methods: i) Examine at least 2 months of source documents evidencing annual income; ii)Obtain from the family a written statement of the amount of the family’s annual income and family size, along with a certification that the information is complete and accurate. The certification must state that the family will provide source documentation upon request; and iii)Obtain a written statement from the administrator of a government program under which the family receives benefits, and which examines, each year, the annual income of the family. b)When determining whether a family is income eligible, either one of the following definitions of annual income must be used: i) Annual income as defined at 24 CFR 5.609, except when determining the income of a homeowner for an owner- occupied rehabilitation project, the value of the homeowner’s principal residence may be excluded from the calculation of Net Family Assets; or ii)Adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual Federal annual income tax purposes; c)Although the applicant may use any of the two definitions of “annual income” permitted above to calculate adjusted income, it must apply exclusions from income established at 24 CFR 5.611; 2021 HOME Proposal 24 c/5-8-20 d)The applicant must calculate the gross amount of income anticipated by all adults in the household during the twelve (12) months following the effective date of the income determination. Annual income shall include income from all family members. Income or asset enhancement derived from the HOME-assisted project shall not be considered in calculating annual income. The applicant is not required to re-examine the family’s income at the time the HOME assistance is provided, unless more than six months has elapsed since the applicant determined that the family qualified as income eligible. 2. INCOME TARGETING: HOMEOWNERSHIP (92.217) – 100% of HOME funds invested in dwelling units that are occupied by households that qualify as low-income families at the time of occupancy or at the time funds are invested, whichever is later. C.OCCUPANCY REQUIREMENTS (92.254a3 & b) The housing must be acquired by a homebuyer whose family qualifies as a low-income family and the housing must be the principal residence of the family throughout the period of affordability. The housing is the principal residence of an owner whose family qualifies as a low-income family at the time HOME funds are committed to the housing. D.PROPERTY STANDARDS (92.251) 1.Housing that is constructed or rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion, except as provided in paragraph (b) of this section. Newly constructed housing must meet the current edition of the Model Energy Code published by the Council of American Building Officials; 2021 HOME Proposal 25 c/5-8-20 2.All other HOME-assisted housing must meet all applicable state and local housing quality standards and code requirements; 3.Construction of all manufactured housing must meet the Manufactured HOME Construction and Safety Standards established in 24 CFR Part 3280. These standards pre-empt State and local codes covering the same aspects of performance for such housing. The applicants HOME assistance to install manufactured housing units must comply with applicable State and local laws or codes; Manufactured housing that is rehabilitated using HOME funds must meet the requirements set forth in paragraph (D)(1) of this section; 4.The housing must meet the accessibility requirements at 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), upon the request of the prospective buyer if the nature of the handicap of an expected occupant so requires; 5.The following requirements apply to housing for homeownership that is to be rehabilitated after transfer of the ownership interest: a)Before the transfer of the homeownership interest, the participating jurisdiction must: i) Inspect the housing for any defects that pose a danger to health; and ii)Notify the prospective purchaser of the work needed to cure the defects and the time by which defects must be cured and applicable property standards met. b)The housing must be free from all noted health and safety defects before occupancy and not later than six months after transfer. c)The housing must meet the property standards in 92.251(a)(1) of this section no later 2021 HOME Proposal 26 c/5-8-20 than two years after transfer of the ownership interest. E.PROPERTY VALUE (92.254a2 & b) Has an initial purchase price or has an estimated appraised value at acquisition or after any repair needed to meet the property standards in Section 92.251 must not exceed 95% of the median area purchase price as determined by HUD. PROPERTY VALUE LIMIT 1-FAMILY 2-FAMILY 3-FAMILY 4-FAMILY LIMIT LIMIT LIMIT LIMIT_ $340,000 $435,000 $527,000 $653,000 F.INITIAL AFFORDABILITY None for homebuyer. G.LONG-TERM AFFORDABILITY (92.254a4) The units assisted with HOME funds must comply with the resale restriction or recapture provision for the following number of years: Under $15,000/unit 5 years $15,000/unit to $40,000/unit 10 years Over $40,000/unit 15 years 1.RESALE AND RECAPTURE PROVISIONS (92.254a5i & ii) To ensure affordability, either resale or recapture requirements must be imposed. RESALE – Resale requirements must ensure, if the housing does not continue to be the principal residence of the family for the duration of the period of affordability, that the housing is made available for subsequent purchase only to a buyer whose family qualifies as a low-income family and will use the property as its principal residence. The resale requirement must also ensure that the price at resale provides the original HOME- assisted owner a fair return on investment and 2021 HOME Proposal 27 c/5-8-20 ensure that the housing will remain affordable to a reasonable range of low-income homebuyers. Deed restrictions, covenants running with the land, or other similar mechanisms must be used as the mechanism to impose resale requirements. The affordability restrictions may terminate upon occurrence of any of the following termination events: foreclosure, transfer in lieu of foreclosure or assignment of an FHA insured mortgage to HUD. Purchase options, rights of first refusal or other pre-emptive rights to purchase the housing before foreclosure may be used to preserve affordability. RECAPTURE – Recapture provisions must ensure that the County of Hawai i recoups all or a portion of the HOME assistance to the homebuyers, if the housing does not continue to be the principal residence of the family for the duration of the affordability period. The following options for recapture requirements are acceptable to HUD: a)Recapture the entire amount of the HOME investment from the homeowner. b)The HOME investment amount to be recaptured may be reduced on a pro-rata basis for the time the homeowner has owned and occupied the housing measured against the required affordability period. c)If the net proceeds are not sufficient to recapture the full HOME investment plus enable the homeowner to recover the amount of the homeowner’s down payment and any capital improvement investment made by the owner since purchase, the participating jurisdiction may share the net proceeds. d)The County of Hawai i may permit the homeowner to recover the homebuyer’s entire investment before recapturing the HOME investment. e)The HOME investment that is subject to recapture is based on the amount of HOME 2021 HOME Proposal 28 c/5-8-20 assistance that enabled the homebuyer to buy the dwelling unit. This includes any HOME assistance that reduced the purchase price from fair market value to an affordable price but excludes the amount between the cost of producing the unit and the market value of the property. The recaptured funds must be used to carry out HOME-eligible activities. H.TARGETING OF HOME FUNDS (92.217) With respect to homeownership assistance, 100% of these funds are invested with respect to dwelling units that are occupied by households that qualify as low-income families at the time of occupancy or at the time funds are invested, whichever is later. I.OTHER REQUIREMENTS 1.SPECIAL CONDITION PROJECT SIGN All construction projects in excess of $50,000, which are undertaken using HOME Program funds, shall have a project sign (minimum 4’ x 4’) located prominently at the project site. The sign must be installed prior to construction and shall be maintained for the duration of the construction project. 2.RECORDKEEPING (92.508) – All projects are subject to the recordkeeping requirements of 92.508. 2021 HOME Proposal 29 c/5-8-20 IV.TENANT-BASED RENT ASSISTANCE A.HOME INVESTMENT 1.MINIMUM – none 2.MAXIMUM (92.209h) – The amount of the monthly assistance paid to, or on behalf of, a family may not exceed the difference between a rent standard for the unit size established by the participating jurisdiction and 30% of the family’s monthly adjusted income. The participating jurisdiction must establish a minimum tenant contribution to rent. The rent standard for a unit size must be based on the following: Local market conditions; or May not be less, for each unit size, than 80% of the published Section 8 Existing Housing fair market rent (in effect when the payment standard amount is adopted) nor more than the fair market rent or HUD approved community-wide exception rent. HOME RENT LIMITS (07/01/20 – amended annually) FAIR MARKET UNIT TYPE RENT____ Efficiency $ 931 1 Bedroom 1,085 2 Bedrooms 1,429 3 Bedrooms 1,800 4 Bedrooms 1,936 5 Bedrooms 2,226 6 Bedrooms 2,517 3. MATCHING REQUIREMENT (92.218-220) For every $1.00 of HOME funds spent, the required match contribution must total not less than $.25. 2021 HOME Proposal 30 c/5-8-20 B.INCOME LIMITS/ELIGIBLE BENEFICIARIES – The chart below indicates the income limits for low income families. FAMILY INCOME LIMITS (As of 07/01/20 – amended annually) Household Low Income Size 60% Limit 80% of Median Income 1 Person $35,040 $ 46,700 2 Persons 40,020 53,350 3 Persons 45,000 60,000 4 Persons 49,980 66,650 5 Persons 54,000 72,000 6 Persons 58,020 77,350 7 Persons 61,980 82,650 8+Persons 66,000 88,000 2020 Hawai i County Median Income - $75,200 1. INCOME DETERMINATION (92.203) – The applicant must determine that each family is income eligible by determining the family’s annual income. a)For families who are tenants in HOME- assisted housing and not receiving HOME tenant-based rental assistance, the applicant must determine annual income by one of the following methods: i) Examine at least 2 months worth of source documents evidencing annual income; ii)Obtain from the family a written statement of the amount of the family’s annual income and family size, along with a certification that the information is complete and accurate. The certification must state that the family will provide source documentation upon request; and iii)Obtain a written statement from the administrator of a government program under which the family receives benefits, and which examines, each year, the annual income of the family. 2021 HOME Proposal 31 c/5-8-20 b)When determining whether a family is income eligible, one of the following two definitions of annual income must be used: i) Annual income as defined at 24 CFR 5.609 except when determining the income of a homeowner for an owner- occupied rehabilitation project, the value of the homeowner’s principal residence may be excluded from the calculation of Net Family Assets; or ii)Adjusted gross income as defined for purposes of reporting under Internal Revenue Service (IRS) Form 1040 series for individual Federal annual income tax purposes. c)Although the applicant may use either of the definitions of annual income permitted above, to calculate adjusted income it must apply exclusions from income established at 24 CFR 5.611. The HOME rents for very-low income families established under 92.252(b)(2) are based on adjusted income. In addition, the applicant may base the amount of tenant-based rental assistance on the adjusted income of a family. d)The applicant must calculate the gross amount of income anticipated by all adults in the household during the twelve (12) months following the effective date of the income determination. Annual income shall include income from all family members. Income or asset enhancement derived from the HOME-assisted project shall not be considered in calculating annual income. The applicant is not required to re-examine the family’s income at the time the HOME assistance is provided, unless more than six months has elapsed since the applicant 2021 HOME Proposal 32 c/5-8-20 determined that the family qualified as income eligible. C.OCCUPANCY REQUIREMENTS - See Section H, Targeting of HOME Funds. Very Low Income Occupancy Requirements: Not Applicable. D.PROPERTY STANDARDS (92.251) Housing occupied by a family receiving tenant-based assistance under this section must meet the requirements set forth in 24 CFR Section 982.401. The participating jurisdiction must inspect the housing initially and re-inspect it annually. All housing occupied by tenants receiving HOME tenant-based rental assistance must meet the housing quality standards in 24 CFR 982.401. (See 92.251d) E.PROPERTY VALUE – Not applicable. F.INITIAL AFFORDABILITY – Not applicable. G.LONG-TERM AFFORDABILITY – Not applicable. H.TARGETING OF HOME FUNDS (92.216a) 1.Not less than 90% of the families receiving such rental assistance are families whose annual incomes do not exceed 60% of the median family income for the area, at the time of occupancy or at the time funds are invested, whichever is later; 2.The remainder of the families receiving such rental assistance are households that qualify as low-income families at the time of occupancy or at the time funds are invested, whichever is later. The dwelling units assisted with such funds are occupied by such households. I.OTHER REQUIREMENTS 1.SECURITY DEPOSIT PROGRAM REQUIREMENTS (92.209j) If the applicant is interested in developing a 2021 HOME Proposal 33 c/5-8-20 security deposit program, Section 92.209 provides the requirements for the program. Generally: Provide loans or grants to very low and low- income families for security deposits for rental of dwelling units whether or not the participating jurisdiction provides any other tenant-based rental assistance. The relevant State or local definition of “security deposit” in the jurisdiction where the unit is located is applicable for the purposes of this part, except that the amount of HOME funds that may be provided for a security deposit may not exceed the equivalent of two month’s rent for the unit. Only the prospective tenant may apply for HOME security deposit assistance, although the participating jurisdiction may pay the funds directly to the tenant or to the landlord. HOME funds for security deposits may be provided as a grant or as a loan, the loan repayments are program income to be used in accordance with 92.503. Paragraphs (b), (c), (d), (f), (g) and (i) of 92.209 are applicable to HOME security deposit assistance, except that income determinations pursuant to paragraph (c)(1) of this section and Housing Quality Standard inspections pursuant to paragraph (I) of this section are required only at the time security deposit assistance is provided. (See Appendix D) 2.TENANT-BASED RENTAL ASSISTANCE PROGRAM REQUIREMENTS (92.209) – If the applicant is interested in the development of a tenant-based rental assistance program, Section 92.209 provides the requirements for the program. Generally: a)CERTIFICATION (92.209b) – The State/County must provide the certification about inclusion of this type of assistance in its consolidated plan and specify local market 2021 HOME Proposal 34 c/5-8-20 conditions that lead to the decision to use HOME funds for rental assistance. b)TENANT SELECTION (92.209c) – Selection to be in accordance with written tenant selection policies and criteria that are consistent with the following: LOW-INCOME FAMILIES – Tenant-based rental assistance may only be provided to very low- and low-income families. The participating jurisdiction must determine that the family is very-low or low-income before assistance is provided. During the period of assistance, the participating jurisdiction must annually determine that the family continues to be low-income. PREFERENCES FOR INDIVIDUALS WITH SPECIAL NEEDS – the County/State may establish a preference for individuals with special needs and may offer, in conjunction with a tenant-based rental assistance program, particular types of services. The County/State may also provide a preference for a specific category of individuals with disabilities, if the specific category is identified in the consolidated plan as having unmet needs and the preference is needed to narrow the gap in benefits and services received by such persons. Preferences cannot be administered in a manner that limits the opportunities of persons on any basis prohibited by laws listed under 24 CFR 5.105(a). At least 50% of the individuals must qualify or would qualify in the near future for one of the three federal preferences. EXISTING TENANTS IN THE HOME-ASSISTED PROJECTS – Low-income families currently residing in the units that are designated for rehabilitation or acquisition under the 2021 HOME Proposal 35 c/5-8-20 HOME Program may be selected without requiring that the family meet the written tenant selection policies and criteria. Families so selected may use the tenant- based assistance in the rehabilitated or acquired unit or other qualified housing. 3.TERM OF RENTAL ASSISTANCE CONTRACT (92.209e) – Rental assistance contracts may not exceed twenty-four months but may be renewed subject to the availability of HOME funds. 4.RENT REASONABLENESS (92.209f) – The participating jurisdiction must disapprove a lease if the rent is not reasonable, based on rents that are charged for comparable unassisted units. 5.LEASE REQUIREMENTS (92.209g) – Must comply with the requirements in Section 92.253 (a) and (b). Briefly, the requirements in Section 92.253(a) and (b) state: a)LEASE TERMS (92.253a & b) – The lease between a tenant and an owner of rental housing assisted with HOME funds must be for not less than one year unless by mutual agreement between the tenant and owner. b)PROHIBITED LEASE TERMS (92.253b) – The lease may NOT contain any of the following provisions: Agreement to be sued Treatment of property Excusing owner from responsibility Waiver of notice Waiver of legal proceeding Waiver of a jury trial Waiver of right to appeal court decision Tenant chargeable with cost of legal actions regardless of outcome 6.USE OF SECTION 8 ASSISTANCE (92.209l) – In any case where assistance under Section 8 of the 1937 Act becomes available to a participating jurisdiction, recipients of tenant-based 2021 HOME Proposal 36 c/5-8-20 assistance under this part will qualify for tenant selection preferences to the same extent as when they received the tenant-based rental assistance under this part. 7.PORTABILITY OF ASSISTANCE (92.209d) – A participating jurisdiction may require the family to use the tenant-based assistance within the participating jurisdiction’s boundaries or may permit the family to use the assistance outside its boundaries. 8.RECORDKEEPING (92.508) – All projects are subject to the recordkeeping requirements of 92.508. 2021 HOME Proposal 37 c/5-8-20 V.THE COUNTY SELECTION SYSTEM The County Selection system is designated to help select those projects having the greatest need and which most effectively addresses that need. In order to be considered for funding, the project must meet certain minimum requirements established by HUD, HHFDC, and the OHCD. These are identified as “Threshold Factors.” If all the threshold factors are met, the project will be rated on the basis of “Priority Factors,” including the Consolidated Plan priorities, extent and seriousness of the identified need, the need for HOME funds, the results to be achieved, budget and funding, leveraging/matching, project schedule, site selection information, environmental concerns, the applicant’s capabilities, past performance in grant management, project management, and ability to meet and comply with federal overlay statutes. A.THRESHOLD FACTORS A proposal must meet certain minimum requirements before the OHCD will begin to rate the project. If your proposal does not address or meet these threshold factors, the OHCD will not rank and rate your project proposal. The threshold requirements are listed below: 1.ELIGIBLE COST The project cost must be eligible with respect to 24 CFR 92.205 – 92.209. 2.FORMS OF ASSISTANCE The forms of assistance must be eligible with respect to 24 CFR 92.205(b). 3.ELIGIBLE ENTITIES The entity carrying out the HOME activity must be eligible. 2021 HOME Proposal 38 c/5-8-20 4.MATCHING REQUIREMENTS The project must be eligible with respect to 24 CFR 92.218 – 92.220. Applicants are required to come up with a $.25 match for every $1.00 of HOME funds requested. Documentation to verify the matching funds is required. 5.ELIGIBLE ACTIVITY The activity must be eligible. 6.PROJECT SCHEDULE In order to comply with and meet HOME Program requirements, all activities funded with HOME funds shall be expended and completed within an eighteen (18) month period. This period is anticipated to begin from November 1, 2021 and ends on April 30, 2023. 7.CONSISTENCY WITH THE COUNTY CONSOLIDATED PLAN The Consolidated Plan contains the County of Hawai i’s priorities and objectives for HUD Programs. As such, all projects must show that they are consistent with the Consolidated Plan’s priorities and objectives in order to be considered by the OHCD for HOME funds. Projects requesting HOME funding will need to address at least one of the priorities and objectives stated in the County's five-year 2020- 2024 Consolidated Plan for utilizing HUD’s CDBG and HOME Program funds. The County’s Consolidated Plan’s priorities will be used to allocate HOME funds in accordance with project eligibility requirements and program rules. Higher points will be awarded to project proposals that address high priority activities. 2021 HOME Proposal 39 c/5-8-20 The following are the County’s CP Priorities: HIGH PRIORITIES: Housing: Housing for households earning less than 80% of median income [i.e. rental, homeownership, special needs, homeless and activities which will produce new housing (i.e. water, streets, environmental activities, planning, etc.)] Public Health and Safety: Activities that protect the health and safety of the residents in Hawai i County. (i.e. fire, police, environment, etc.) Federal Mandates: Activities to meet legal obligations or federal mandates. (i.e. ADA) Public Facilities - Child care, youth, and/or senior centers; facilities for the disabled; homeless facilities; health facilities; neighborhood facilities; and/or parks & recreation facilities. MEDIUM PRIORITIES: Infrastructure (other than housing related) - Water/sewer/street improvements; solid waste disposal; and/or flood drainage improvements. Public Services - Senior, disabled, youth, childcare, transportation, substance abuse, employment, health, lead hazards, crime, etc. Economic Development – Activities which create jobs for low and moderate income persons. LOW PRIORITIES: Public Facilities - Parking facilities and non- residential historic preservation. Infrastructure – Sidewalks. 2021 HOME Proposal 40 c/5-8-20 8.RELOCATION PLAN If individuals or businesses will be relocated in order to carry out the proposed project, it is required that the applicant describe why displacement is necessary and submit a relocation plan that complies with 24 CFR 570.606, Uniform Relocation Act (URA), as contained in Appendix G, and the County of Hawai i’s Relocation Plan. If there is no approved relocation/displacement plan, the proposed project will not be rated and ranked. 9.ENVIRONMENTAL CONSIDERATIONS All projects utilizing HOME funds are required by HOME Program rules and regulations to be reviewed for the appropriate level of environmental compliance. The type of environmental compliance is a significant milestone in the project schedule and will ultimately affect the progress of the project. Projects requiring an Environmental Impact Statement (EIS) or an Environmental Assessment expecting to have numerous environmental concerns will not be rated and ranked. 10.SITE SELECTION In order to implement the project in a timely manner, it is vital that the project site be identified and controlled by the applicant. Projects requiring changes in zoning and/or if it involves site acquisition with HOME funds, the applicant must submit a timeline identifying the steps and their process to comply with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended. 11.PROJECT FUNDING Applicants will need to state and identify whether there are other sources of funds (i.e., County, State, private donations, etc.). Documentation to verify that these funds are secured and committed are required to be submitted. 2021 HOME Proposal 41 c/5-8-20 B.PRIORITY FACTORS The HOME program is moving towards a performance-based funding. Based on community input and current data, the County established its high, medium and low priorities for the HOME program. Applicants should clearly describe how its proposed project will comply and ultimately accomplish a priority(ies) of the County’s 2020-2024 Consolidated Plan. Higher points will be awarded to projects that address high priority activities. The proposal will be evaluated and selected for assistance based upon the following rating criteria: Project Evaluation: Maximum Points 1. Extent and Seriousness of the 100 Identified Need 2. Need for HOME Funds 100 3. Consolidated Plan Priorities 100 4. Results to be Achieved 100 5. Budget and Funding 100 6. Leveraging/Matching 100 7. Site Selection Standards Information 100 8. Environmental Considerations 100 9. Additional Actions Needed 50 10. Compliance w/ Federal Overlays 50 11. Project Management 100 12. Past Performance _____100 TOTAL POSSIBLE POINTS 1,100 Project Evaluation The project evaluation element, which represents a significant portion of the total number of points each project can receive, is intended to ensure that the best projects are considered for funding. Twelve components have been identified and will be considered in the rating of this element. These components are: 1.EXTENT AND SERIOUSNESS OF THE IDENTIFIED NEED: Applicants should clearly describe the extent and the seriousness of the identified needs. 2021 HOME Proposal 42 c/5-8-20 2.NEED FOR HOME FUNDS: Applicants should clearly describe why HOME funds are needed for this project. 3.CONSOLIDATED PLAN PRIORITES: Applicants will need to address at least one of the priorities stated in the County’s five-year 2020-2024 Consolidated Plan in order to be considered by the OHCD for HOME funds. 4.RESULTS TO BE ACHIEVED: Applicants should explain what will actually be accomplished as a result of undertaking this project. Applicants should describe how and to what extent the proposed project will address the needs identified. The kind of benefit which the proposal provides may make a difference in judging and comparing the adequacy of the proposal in meeting the identified needs. 5.BUDGET AND FUNDING: The project funding and budget elements are intended to ensure that the proposed project can be completed and that the program funds are effectively used and secured. It is to the applicant’s benefit that their project budget demonstrates that HOME funds will be encumbered and utilized prior to the eighteen-month expenditure deadline. The scoring system is also intended to encourage the use of resources and funds over and above the HOME funds applied for in undertaking a project. 6.LEVERAGING/MATCHING: Applicants applying for HOME funding are required to match every $1.00 of federal HOME funds with at least $.25 of eligible matching funds. The applicant must clearly document the amount of matching funds committed to the project. In addition, applicants should describe how they are able to utilize other sources of funding for the implementation of the project. 2021 HOME Proposal 43 c/5-8-20 7. SITE SELECTION STANDARDS INFORMATION: Applicants proposing to acquire or lease land for housing or any other eligible activity should address the site selection standards and the efforts it will take to meet them. See Exhibit 9 of the proposal for the selection standards. 8. ENVIRONMENTAL CONSIDERATIONS: A federal environmental review will be required for all projects selected for funding. Consequently, information relating to environmental concerns at the selection stage can have a significant impact on the proposal. The extent to which the applicant has considered and acted upon potential environmental concerns may be important. Some examples are: relocation activities from a flood plain, the effect of increased traffic in a neighborhood resulting from a funded activity, historic sites, hazardous material, etc. 9. ADDITIONAL ACTIONS NEEDED: Evidence should be provided where necessary to indicate that other resources or activities are needed to ensure a complete project will be available. If such support is not documented, or if the need is evident but not addressed, the impact of the proposal may be diminished. Applicant Evaluation The applicant evaluation element is intended to ensure that the applicant has the necessary qualifications and expertise to carry out the proposed project. To be awarded HOME funds, the applicant must have the capacity to undertake, complete, and administer the project in compliance with the HOME program rules in a timely and efficient manner. In addition, applicants who have received HOME funds in the past will be evaluated on the basis of their past performance. 2021 HOME Proposal 44 c/5-8-20 The components to be examined include: 10. COMPLIANCE WITH FEDERAL OVERLAY STATUTES: Applicants are required to indicate whether their activities will necessitate compliance with the federal overlay statutes as described in Exhibit 11 and the applicant should describe its understanding and procedures for complying with these federal statutes. 11. PROJECT/PROGRAM MANAGEMENT CAPABILITIES: The project management component is designed to evaluate the applicant’s capacity to implement the project. If an on-going program activity will result from this project (i.e., construction of a building for operation of rental housing project, etc.), the program management section will be evaluated to determine if the applicant has the capacity to implement the program activity as well as the project. 12. PAST PERFORMANCE: The performance component involves an examination of the applicant’s previous record in carrying out the HOME project. Criteria to be examined include: a.Applicant’s rate of progress in completing activities. b.Applicant’s rate of expenditure and obligation of funds. c.Applicant’s compliance with applicable laws and regulations. d.Applicant’s track record for responding to the OHCD in a timely manner. If the applicant has not received a Block Grant in the past, it will be rated solely on its Project Management Capabilities to complete the project in the eighteen-month time frame. Points will be assigned for each component based on the following criteria: 2021 HOME Proposal 45 c/5-8-20 RATING CRITERIA 1.EXTENT AND SERIOUSNESS OF THE IDENTIFIED NEEDS 100 pts. Clear need is described which is major and current and the need is more crucial than others. 75 pts. Need is clearly described and is serious. 50 pts. Need is described and is fairly serious. The need does not appear to be as crucial as others being considered in the selection process. 25 pts. Need is described but not major or pronounced. 0 pts. No clear need is described, or need is not major or pronounced. 2. NEED FOR HOME ASSISTANCE 100 pts. Clear need for HOME funds is described and the project cannot occur without the HOME award. 75 pts. Need for HOME funds is clearly described and is serious. 50 pts. Need for HOME funds is described and is fairly serious. The need does not appear to be as crucial as others being considered in the selection process. 25 pts. Need for HOME funds is described but is not major or pronounced. 0 pts. No clear need is described, or need is not major Pronounced. 3. CONSOLIDATED PLAN PRIORITIES 100 pts. The project will address a high priority and goal of the Housing and Special Needs priorities within the County’s Consolidated Plan. 75 pts. The project will address a medium priority and goal of the Housing and Special Needs priorities within the County’s Consolidated Plan. 50 pts. The project will address a low priority and goal of the Housing and Special Needs priorities within the County’s Consolidated Plan. 25 pts. The project meets the high, medium and/or low priorities but will not accomplish the goal of the Housing and Special Needs priorities within the Consolidated Plan. 0 pts. The project does not address a priority and goal of the Housing and Special Needs priorities within the County’s Consolidated Plan. 2021 HOME Proposal 46 c/5-8-20 4. RESULTS TO BE ACHIEVED 100 pts. The project would resolve the problem completely, other actions needed to support the project have been committed and are clearly stated in the proposal. 75 pts. The project would have a major impact on the need but would not completely resolve the problem. 50 pts. The project would have some impact on the need but not as much as that of other projects. 25 pts. The project does not clearly address the need. The project appears to be of general community benefit and would only minimally serve low- and very-low income persons. 0 pts. Only a small portion of the described need would be addressed. The community has made no apparent effort to solve the problem through local and other sources. 5. BUDGET AND FUNDING 100 pts. The project costs are clearly documented and are accurate. 75 pts. The project costs appears to be accurate but not well documented. 50 pts. The accuracy of the project costs are questionable and not well documented. 25 pts. The project costs are inaccurate and are not documented. 0 pts. The project costs were not submitted and not documented. 6. LEVERAGING/MATCHING 100 pts. Other funding sources are to be used in conjunction with HOME funds in order to complete the project. Applicant has obtained firm commitments for all of these funds. 75 pts. Other funding sources are to be used in conjunction with HOME funds in order to complete the project. Applicant has obtained firm commitments for more than one-half of these funds. 50 pts. Other funding sources are to be used in conjunction with HOME funds in order to complete the project. Applicant has obtained firm 2021 HOME Proposal 47 c/5-8-20 commitments for less than one-half of these funds. 25 pts. Other funding sources are to be used in conjunction with HOME funds in order to complete the project. Applicant has not obtained firm commitments for these funds. 0 pts. The grant funds requested will provide all the funding necessary for completing the project. No other resources are to be used in conjunction with HOME funds. 7. SITE SELECTION STANDARDS INFORMATION 100 pts. There are no site selection problems identified. 75 pts. There may be some site selection problems; however, they appear to be fully resolvable. 50 pts. The project appears to have some problems with respect to site selection. 25 pts. The project appears to have a moderate amount of problems with respect to site selection. 0 pts. The project appears to have extensive problems with respect to site selection. 8. ENVIRONMENTAL CONCERNS 100 pts. An environmental review has been completed, and there are no environmental problems. 75 pts. Environmental problems have been identified; however, they appear to be fully resolvable. 50 pts. The project appears to have slight problems with respect to environmental concerns. 25 pts. The project appears to have moderate problems with respect to environmental concerns. 0 pts. The project appears to have extensive problems with respect to environmental concerns. 9. ADDITIONAL ACTIONS NEEDED 50 pts. No further action is needed. The project fully resolves the identified problem. 40 pts. Some additional action may be needed to fully resolve the problem. 30 pts. Moderate action is still needed to resolve the identified problem. 20 pts. Extensive action is still needed to fully resolve the identified problem. 2021 HOME Proposal 48 c/5-8-20 0 pts. The project does not address the identified problem. 10. COMPLIANCE WITH FEDERAL OVERLAY STATUTES 50 pts. There are no overlay statute problems. 40 pts. There may be overlay statute problems; however, they appear reasonable and fully achievable. 30 pts. The project appears to have slight problems with respect to overlay statutes compliance. 20 pts. The project appears to have moderate problems with respect to overlay statutes compliance. 0 pts. The project appears to have extensive problems with respect to overlay statutes compliance. 11. PROJECT MANAGEMENT 100 pts. The applicant clearly documents the necessary qualifications and experience to carry out the project. Staff has extensive training and experience relative to their functions. Applicant has excellent previous experience and capacity for managing grant funds. 75 pts. The applicant appears to have the necessary qualifications and experience to carry out the project, but it is not well documented. 50 pts. The applicant appears to have most of the necessary qualifications and experience to carry out the project. 25 pts. The applicant appears to have some of the necessary qualifications and experience to carry out the project. 0 pts. The applicant does not appear to have the necessary qualifications or experience. 12. PAST PERFORMANCE 100 pts. The applicant has implemented the project(s) on a timely basis. 75 pts. The applicant had some problems in implementing the project(s), but the problems were fully resolvable. 50 pts. The applicant had problems in implementing the project(s). 25 pts. The applicant had a moderate amount of problems in implementing the project(s). 2021 HOME Proposal 49 c/5-8-20 0 pts. The applicant had extensive problems in implementing the project(s). C.FINAL SELECTION RANKING The points received on each of the elements will be added and the projects ranked accordingly. A project proposal must receive a minimum of 50% of the total points to be considered for ranking. An interview with each applicant may be conducted, to clarify any information presented in the project proposal, prior to the final recommendation to the Hawai i County Housing Agency and the Hawai i County Council. The OHCD will then recommend, for Hawai i County Housing Agency/Council approval, the projects to be included in the County’s Consolidated Plan to HUD/HHFDC, based on the ranking system. In cases of a tie in the number of points a project receives, the following method will be used: a)The proposal which has the higher “Extent and Seriousness of the Identified Needs” evaluation score will be selected; b)If the projects meet the same higher “Extent and Seriousness of the Identified Needs”, the proposal which has the higher “Need for HOME funds” evaluation score will be selected. 2021 HOME Proposal 50 c/5-8-20 VI.PROPOSAL REQUIREMENTS A.GENERAL The information required in the proposal will be used by the OHCD to make a recommendation to the Hawai i County Council for final funding decisions. Appendix B contains a copy of the proposal form. NOTE: Please call Beryl Manliguis at 808/961-8379 if you would like proposal form on CD (Word) B.SUBMISSION DATES Original project proposals and two (2) copies for the 2021 HOME Program funds should be bounded to secure all documents and must be submitted to the OHCD by November 9, 2020, no later than 4:30 p.m. Proposals received after the date and time deadline, faxed copies, and proposals not accompanied with the appropriate two copies and incomplete proposals will be rejected. Only data submitted by the deadline will be considered in the selection process. The OHCD may request additional data which will be required to be submitted as promulgated by the HOME Program rules to comply with the Consolidated Plan. Additional data submitted after the proposal due date and not requested by the OHCD will be returned. C.PROPOSAL REQUIREMENTS The proposal and its exhibits in Appendix B contains specific instructions for completing each section. Applicants should check and verify the proposal requirements as contained in the instructions and checklist form. D.PROPOSAL SCHEDULE The following is the tentative HOME application schedule: 2021 HOME Proposal c/5-8-20 2021 CDBG/HOME ACTION PLAN SCHEDULE DATE TASK Public hearings to hear the Housing and Community Development needs and explain the CDBG/HOME proposal procedure and Action Plan process 09/09/20 & Virtual Public hearings to hear the Housing & Community Development Needs 09/11/20 and explain the CDBG/HOME/HTF proposal procedure and Action Plan process. 09/14/20 CDBG/HOME/HTF project proposals available. 11/09/20 CDBG/HOME/HTF project proposals due to the OHCD. 11/12-12/04/21 OHCD to review, rank and select CDBG/HOME/HTF projects for the County’s Action Plan to HUD. 12/07-01/15/21 OHCD to draft the County’s proposed 2021 Action Plan. 2/01/21 Public Notice appears in newspapers announcing the availability of the proposed 2021 Action Plan for public review and comment. 2/02/21 to Comment period for the County’s proposed Action Plan 3/03/21 (30 days required). 3/16/21 Deadline to submit documents for Finance Committee meeting. 4/06/21 Finance Committee meeting to approve project funding. 4/13/21 Deadline to submit documents for Hawai i County Council. 4/21/21 Council meeting to authorize Mayor to sign and submit the County’s 2021 Action Plan to HUD. 5/07/21 Obtain Mayor’s signature. 5/09/21 Public Notice appears in newspapers summarizing the final 2021 Action Plan. 5/13/21 Mail 2021 Action Plan to HUD. 5/15/21 2021 Action Plan due 2021 HOME Proposal c/5-8-20 A.INSTRUCTIONS/CHECKLIST This checklist will aid the applicant in submitting all the appropriate forms required for a complete project proposal. Please complete the checklist by placing a check mark next to each item and attach Exhibits 1 to 16 along with required forms and documents as requested for each exhibit in a bounded format. Exhibits must be typewritten, or computer generated. Narratives should be straightforward and limited to facts, solutions to problems, and proposed plans of actions. Limit these responses to no more than two (2) pages. Narratives beyond two (2) pages will not be considered in the evaluation/scoring. Please tab exhibits for ease of locating information. All proposals should be bound to secure your document and labeled as original and copies. Incomplete proposals or those presented in a different format may be rejected. ___ 1. Letter of transmittal ___ 2. Project Summary Proposal Form Answer all questions. If a question does not apply, mark it N/A (not applicable). ___ 3. Exhibit 1 – Project Information Sheet ___ Select proper activity form ___ Narrative ___ Minimum HOME Program Description Requirement ___ 4. Exhibit 2 – Extent and Seriousness of the Identified Need ___ Narrative ___ 5. Exhibit 3 – Consolidated Plan Priorities ___ Narrative ___ 6. Exhibit 4 – Need for HOME funds ___ Narrative ___ 7. Exhibit 5 – Results to be Achieved ___ Forms ___ Narrative ___ Proforma (Rental Housing) 2021 HOME Proposal c/5-8-20 ___ 8. Exhibit 6 – Budget and Funding ___ Forms ___ Narrative ___ Proforma (Rental Housing) ___ 9. Exhibit 7 – Leveraging/Matching ___ Narrative/Documentation ___ 10. Exhibit 8 – Project Schedule ___ Schedule ___ 11. Exhibit 9 – Site Selection Standards Information ___ Form ___ Narrative ___ 12. Exhibit 10 – Environmental Considerations ___ Narrative ___ 13. Exhibit 11 – Additional Actions ___ Narrative ___ 14. Exhibit 12 – Compliance with Federal Overlay Statutes ___ Form ___ Narrative ___ 15. Exhibit 13 – Project Management ___ Narrative ___ Organizational Chart ___ 16. Exhibit 14 – Past Performance ___ Narrative ___ 17. Exhibit 15 – Displacement/Relocation/Acquisition ___ Narrative ___ Plan ___ 18. Exhibit 16 – Applicant Information ___ Documentation ___ Articles of Incorporation ___ By-Laws ___ IRS Exemption under Section 501(c) ___ List of Current Board of Directors ___ Board of Director composition ___ Most Current Financial and Program Audit ___ Procedures of Non-Discrimination 2021 HOME Proposal c/5-8-20 ___ 19. Exhibit 17 – Certification/Resolution ___ Form ___ Resolution Authorizing Filing and Submittal ___ 19. Submit the original proposal and two (2) copies to: Office of Housing and Community Development 1990 Kino ole Street, Suite 102 Hilo, Hawai i 96720 Deadline: November 9, 4:30 p.m. 2021 HOME Proposal P-1 c/5-8-20 PROPOSAL FORM FOR THE HOME PROGRAM Office of Housing and Community Development (OHCD) 1990 Kino ole Street, Suite 102 Hilo, Hawai i 96720 Phone: 808/961-8379 GENERAL INFORMATION PROJECT NAME: _____________________________________________ AMOUNT OF HOME FUNDS REQUESTED: $__________________________ Project Address: __________________________________________ City: __________________________ Zip Code: ________________ Census Tract: ___________________TMK: _____________________ Name of Applicant: ________________________________________ Mailing Address: __________________________________________ Phone Number: _____________________________________________ E-mail Address: ___________________________________________ Contact Person and Title: _________________________________ A.Eligible Costs: The following is a list of eligible costs for the HOME Program. Please indicate the appropriate eligible cost(s) that the HOME funds will be used for. ___ Development Hard Costs (please check one of the following: ___ New Construction ___ Rehabilitation ___ New Construction and Rehabilitation Notes: Housing that has received an initial certificate of occupancy or equivalent document within a one-year period before the applicant commits HOME funds to the project is new construction. Conversion of an existing structure to affordable housing is rehabilitation, unless the conversion entails adding one or more units beyond the existing walls, in which case the project is new construction. ___ Acquisition Notes: Acquisition of vacant land or demolition must be undertaken only with respect to a particular housing project intended to provide 2021 HOME Proposal P-2 c/5-8-20 affordable housing and for which funds for construction have been committed. ___ Related Soft Costs (please check all that apply): ___ Architect/Engineer/Professional Services ___ Financing Costs ___ Audits ___ Affirmative Marketing/Fair Housing ___ Initial Operating Deficit Reserve ___ Staff and Overhead Costs for the Project ___ Payment of Impact Fees Charged for all Projects ___ Community Housing Development Organization (CHDO) project specific assistance under 92.301 ___ Relocation/Displacement ___ Tenant-Based Rental Assistance B.Type of Funding Assistance Requested (Check One) ___ Equity Investment ___ Interest-bearing loans or advances ___ Non-interest bearing loans or advances ___ Interest Subsidies ___ Deferred Payment Loan ___ Grants ___ Other (HUD/HHFDC/OHCD Approved) C.Type of Organization (Check One) ___ Public Agency ___ Private Non-Profit Organization ___ Developers ___ Owners ___ Community Housing Development Organization (CHDO) See Appendix F for the CHDO requirements and Appendix B for the CHDO definition ___ Private Organization ___ Other: (HUD Approved) __________________________ D.Matching (Check One) $1.00 HOME to $.25 match Identify the source of matching funds: _______________ 2021 HOME Proposal P-3 c/5-8-20 Eligible: (indicate the amount of matching funds) Cash $_________ Foregone Interest, taxes, fees or charges $_________ Appraised value of land or real property $_________ Investments in on- or off-site improvements $_________ Bond Financing $_________ Donated Construction Materials $_________ Voluntary Labor $_________ Sweat Equity $_________ Other __________________________________ $_________ TOTAL MATCH $_________ MATCHING REQUIREMENT (HOME AMOUNT X .25) $_________ DIFFERENCE TOTAL MATCH AND REQUIREMENT $_________ E.Project Schedule Expected start date: ________________________ Expected completion date: ________________________ F.Consistency with the Consolidated Plan The proposed project must address and comply with the County’s priorities as contained in the County’s current approved 2020-2021 Consolidated Plan (CP). Briefly describe which priority your proposed project complies with and how your project will address the priority(ies). The following are the County’s CP Priorities: HIGH PRIORITIES: Housing: Housing for households earning less than 80% of median income [i.e. rental, homeownership, special needs, homeless and activities which will produce new housing (i.e. water, streets, environmental activities, planning, etc.)] Public Health and Safety: Activities that protect the health and safety of the residents in Hawai i County. (i.e. fire, police, environment, etc.) Federal Mandates: Activities to meet legal obligations or federal mandates. (i.e. ADA) 2021 HOME Proposal P-4 c/5-8-20 MEDIUM PRIORITIES: Public Facilities - Child care, youth, and/or senior centers; facilities for the disabled; homeless facilities; health facilities; neighborhood facilities; and/or parks & recreation facilities. Infrastructure (other than housing related) - Water/sewer/street improvements; solid waste disposal; and/or flood drainage improvements. Public Services - Senior, disabled, youth, childcare, transportation, substance abuse, employment, health, lead hazards, crime, etc. Economic Development – Activities which create jobs for low and moderate income persons. LOW PRIORITIES: Public Facilities - Parking facilities and non- residential historic preservation. Infrastructure – Sidewalks. G.EXHIBITS Complete Exhibits 1 to 16, attach forms, documents, maps, etc., as requested in the exhibit. Narratives should be typed and not more than two pages long. Please tab exhibits for ease of locating information. 2021 HOME Proposal P-5 c/5-8-20 EXHIBIT 1 – PROJECT INFORMATION THRESHOLD FACTOR – REQUIRED TO BE ADDRESSED Check the activity category that most appropriately describes your proposed HOME activity. Complete the appropriate project information sheet which is attached for your use. ____ Rental Housing ____ Homeownership/Rehabilitation ____ Tenant-Based Rental Assistance On a separate sheet briefly describe the proposed project and attach all appropriate information. Include information necessary to provide a clear understanding of the project. This section should include a map to show location(s) of facility or service area; quantify the activity (i.e., number of units to rehabilitate, number of persons to be served). In addition, if the activity is real property acquisition, construction, or rehabilitation, explain what is being acquired, ownership of the property, and specify the property improvements. Discuss whether the project could be implemented at a lower level or smaller scale without the HOME award. Describe the site and/or the building proposed, including property conditions, number of units and bedroom sizes, and proposed use of project. If other funds will be used, explain specifically what the HOME funds will be used for. For special needs housing projects, specify the special need group to be served and describe in detail the services that will be provided or coordinated for the property’s residence and how client outreach will occur. Specify the eligible families/tenants for the project/program and the selection procedure. 2021 HOME Proposal P-6 c/5-8-20 HOME Investment Partnerships (HOME) Program Minimum HOME Program Description Requirements 1.Description of the proposed project/program: Completely describe the proposed project or program (provide conceptual plans and maps showing location.) Does the project/program involve the use of existing property; is the property privately or publicly owned; are the units standard or substandard, occupied or vacant. Describe the site and/or the building proposed, including property conditions, number of units and bedroom sizes, and proposed use of project. Also address if site improvements or other amenities are being proposed (please list). For special needs housing projects, specify the special need group to be served and describe in detail the services that will be provided or coordinated for the property’s residence and how client outreach will occur. A.Rental Housing (New Construction or Acquisition and/or Rehabilitation): Describe the project site and why it is appropriate for the proposed housing, including information on site selection, zoning and land- use considerations, and required permits. Describe the project design (new construction) or the scope of work for rehabilitation and how the needs of the target population have been considered. Include the basis for cost estimates related to site acquisition, development costs, and construction sots. Calculate the total per unit development cost and the HOME investment per unit. Illustrate that the HOME investment per unit does not exceed the maximum allowable investment and that the number of HOME-assisted units is based on the level of HOME funds to be invested. Describe the proposed rent structure and your basis for determining that the proposed rents are appropriate and affordable to the target population. 2021 HOME Proposal P-7 c/5-8-20 Describe how the project will be managed and include a management plan. If a management plan has not yet been prepared, provide the outline for such plan. Include a proforma operating statement projected through the period of affordability. Provide a proposed construction timetable and indicate when HOME funds are expected to be fully disbursed. Provide evidence of site control for the project (i.e., deed, lease, agreement of sale, option agreement.) B.Homebuyer Housing Programs: Describe the project or housing production you propose for first-time buyers. Will housing be newly constructed or will existing units be acquired and rehabilitated? How will vacant land or existing units be acquired and rehabilitated? How will vacant land or existing units be selected for inclusion in the program? Describe the design of homes proposed for new construction or the scope of rehabilitation for existing homes. Include the basis for costs estimates related to site acquisition, development costs. Calculate the total per unit development costs and the HOME investment per unit. Illustrate that the HOME investment per unit does not exceed the maximum allowable investment and the number of HOME-assisted units is based on the level of HOME funds to be invested. Will units be resold to construction or rehabilitation? Does your program include homeowner counseling or training? Describe how the homebuyer will finance the purchase of the home? Will assistance be provided to buyers to secure private financing? If so, what is the anticipated source private finance and what are the proposed terms? How much down payment will the homebuyer be required to provide and how will downpayment assistance, 2021 HOME Proposal P-8 c/5-8-20 assistance with closing costs, and/or second or third mortgages be funded? Provide a proposed construction timetable and indicate when HOME funds will be fully disbursed. Provide evidence of site control for the project (i.e., deed, lease, agreement of sale, option agreement.) For Homebuyer’s Assistance Programs (i.e. Downpayment Loan Program), describe how the program will be administered (i.e. servicing of loans). If the County will be contracting with a non-profit organization to administer the Program, explain the non-profit’s experience in handling such programs. Identify the eligible properties, the purchase price/value limits, the minimum/maximum HOME assistance, and the homebuyer’s contribution. Detail the underwriting requirements, as well as the proposed use of the mortgage loan repayments and payoffs. C.Homeowner Rehabilitation Program: Describe the program you propose for existing homeowners. How will homeowners be selected for participation in the program? What level of rehabilitation is anticipated for homes and what repairs will be eligible for assistance? How will homeowners be involved in determining the scope of rehabilitation? Describe your program procedures including property inspection procedures, costs estimating, contractor selection, and project monitoring. Include the basis for costs estimates. Calculate the total per unit development costs and the HOME investment per unit. Illustrate that the HOME investment per unit does not exceed the maximum allowable investment and that the number of HOME-assisted units is based on the level of HOME funds to be invested. 2021 HOME Proposal P-9 c/5-8-20 D.Tenant-Based Rental Assistance (TBRA) Programs: Describe the manner in which the TBRA Program will be administered, including what agency will have responsibility for program administration. Describe the boundaries of the administering organization’s service area and describe what geographic boundaries will be applied to your TBRA Program. Describe the tenant selection policies and criteria and explain how HOME funds will be used to implement these preferences. (The tenant selection policies and criteria must be reasonably related to preference rules established under section 6(c)(4)(A) of the Housing Act of 1937.) Describe the minimum tenant contribution to be charged the current rent standard (explain how derived) for units of comparable size not assisted with HOME funds and how the assistance will be provided to either the owner who leases units to assisted family or to the tenants. Describe the services proposed to assist recipients in attaining self-sufficiency. 2.Indicate the total number of HOME-assisted and non-HOME assisted units, or the number of families to be assisted with HOME funds, whichever is applicable. 3.List all sources (including dollar amount) for the construction and permanent financing. Include a discussion as to whether the sources are conditional or firm, and when and under what circumstances will they become firm. Provide copies of commitment letters, if available. 4.Specify the form of HOME invest (i.e., loan, grant, deferred loan, etc.) and the specific terms. 5.Identify sources of funds which constitute matching funds to the HOME funds. 6.Specify the term of affordability and how it will be enforced. Please note that for the homebuyer programs, the U.S. Department of Housing and Urban Development must 2021 HOME Proposal P-10 c/5-8-20 approve the resale/recapture provisions should such provisions deviate from the HOME regulations. 7.Specify the eligible families/tenants for the project/program and the County’s selection procedures. 8.Provide a discussion as to how the project/program is consistent with the State’s Consolidated Plan. 9.Provide a proposed timeframe for the project/program. 10.Describe any relocation or displacement that will occur as a result of the project/program and the proposed relocation assistance to be provided. Please include the estimated number of households/businesses to be relocated, the availability of comparable replacement units, the total costs of relocation, the method of determining costs, and how and with what source these activities will be funded. 2021 HOME Proposal P-11 c/5-8-20 PROJECT INFORMATION SHEET RENTAL HOUSING THRESHOLD FACTOR – REQUIRED TO BE ADDRESSED As described in Section II. Rental Housing Activities, there are many federal rules that must be complied with. Please provide the information and describe how the project will comply with the federal rules and requirements outlined in Section II. 1. What is the maximum HOME Investment (92.250) for the units per bedroom size? Total Cost/Unit Home Investment/Unit 0 bedroom $_____________ $_________________ 1 bedroom $_____________ $_________________ 2 bedroom $_____________ $_________________ 3 bedroom $_____________ $_________________ 4+bedroom $_____________ $_________________ 2. INCOME LIMITS (92.252) Explain the procedure that will be used to determine the income of the beneficiaries of the project. How often will the income be re- examined? 3. OCCUPANCY REQUIREMENTS (92.252) AND TARGETING OF HOME FUNDS (92.216): a. Indicate the total number of HOME-assisted units and percentage of units that will be rented to very low-income families and low income families to meet the occupancy requirement and Targeting of HOME Funds Requirement: # of HOME Units __%__ Required Very-Low Income (50% Median Income) ___ ___ Min. 20% (60% and below Median Income) ___ ___ Min. 90% Low Income (80% of Median Income) ___ ___ Up to 10% 2021 HOME Proposal P-12 c/5-8-20 Total Number of HOME units: _________ Total Number of Non-Assisted units: _________ Total Number of Units: _________ b. VERY LOW INCOME FAMILIES (92.252a2) – Indicate and explain which rent structure will be used for the project for very low income families: ___ whose rent does not exceed 30% of the annual income of a family whose income equals 50% of the median income for the area. ___ whose rent does not exceed 30% of the family’s adjusted income. If the unit receives federal or state project-based rental subsidy and the family pays as a contribution towards rent not more than 30% of the family’s adjusted income, the maximum rent is the rent allowable under the federal or state project-based rental subsidy program. ___ whose rent does not exceed 30% of the adjusted income of a family whose annual income equals 65% of the median income for the area. ___ fair market rent for existing housing for comparable units in the area as established by HUD under 24 CFR 888.111. c. LOW INCOME FAMILIES (92.252a3) – Explain how the project will comply with the rent limits. (See No. 5, Initial Affordability, below.) d. TEMPORARY NON-COMPLIANCE WITH OCCUPANCY REQUIREMENTS – (92.252i) – Explain the procedures that will be used for temporary non-compliance with the occupancy requirement. 2021 HOME Proposal P-13 c/5-8-20 4. PROPERTY STANDARDS (92.251) – Indicate and explain the property standards that will be used for existing units, newly constructed units, and/or substantially rehabilitated units. Units built prior to 1978 must comply with the recently implemented Lead-Based Paint requirements (24 CFR Part 35), effective September 15, 1999. Please describe your procedures for compliance. 5. INITIAL AFFORDABILITY: a.RENT LIMITS (92.252a1) – The rental housing project must have rents not greater than the lesser of: the fair market rent established by HUD (see below), less the monthly allowance for the utilities and services to be paid by the tenant; OR the 65% rent limit (see below), less the monthly allowance for any utilities and services to be paid by the tenant. Indicate what the rents will be for your project. HOME RENTS LIMITS (07/01/20) Updated Annually UNIT FAIR MARKET 65%RENT 50%RENT PROPOSED TYPE RENT LIMIT LIMIT_ RENT__ Efficiency $ 931 $ 929 $ 730 $______ 1 Bedroom 1,085 996 781 $______ 2 Bedroom 1,429 1,197 937 $______ 3 Bedroom 1,800 1,374 1,083 $______ 4 Bedroom 1,936 1,514 1,208 $______ 5 Bedroom 2,226 1,651 1,333 $______ 6 Bedroom 2,517 1,789 1,457 $______ b.RENT CHANGES (92.252c) – Explain the procedure that will be used for any changes in rent. 2021 HOME Proposal P-14 c/5-8-20 6.PERIOD OF AFFORDABILITY (92.252e) – See Appendix E) – Explain how the project will comply with the period of affordability requirement. The rental units must remain affordable without regard to the term of any mortgage or the transfer of ownership, pursuant to deed restrictions, covenants running with the land, or other mechanisms approved by HUD, for not less than the following time periods, beginning after project completion. Rehabilitation or acquisition of existing housing per unit amount of HOME funds: Under $15,000 5 years $15,000 to $40,000 10 years Over $40,000 15 years New construction or acquisition Of newly constructed housing 20 years 7.LEASE REQUIREMENTS (92.253): a.LEASE TERMS – Explain the terms of the lease between the owner and tenant. Please attach a copy of the lease that will be used for this project. b.TERMINATION OF TENANCY (92.253c) – Explain the policy that will be followed for termination of tenancy. Explain notice procedures. 8.TENANT SELECTION (92.253d) – An owner of rental housing assisted with HOME funds must adopt written tenant selection policies and criteria that comply with the following. Please provide a copy of the written tenant selection policy. Are consistent with the purpose of providing housing for very low-income and low-income families; 2021 HOME Proposal P-15 c/5-8-20 Are reasonably related to program eligibility and the applicants ability to perform the obligations of the lease; Give reasonable consideration to the housing needs of families that would have a preference under 960.211 (federal selection preferences for admission to public housing) of this title; Provide for the selection of tenants from a written waiting list in the chronological order of their application, insofar as is practicable; and Give prompt written notification of any rejected applicant of the grounds for any rejection. 9.SITE AND NEIGHBORHOOD STANDARDS (92.202b) – See Appendix I – If this project is for the construction of new rental housing, explain how this project will comply with the site and neighborhood standards of 92.202b and 24 CFR 983.6. 2021 HOME Proposal P-16 c/5-8-20 PROJECT INFORMATION SHEET HOMEOWNERSHIP ACTIVITIES THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED As described in Section III. Homeownership Activities, there are many federal rules that must be complied with. Please provide the information and describe how the project will comply with the federal rules and requirements outlined in Section III. 1.What is the maximum HOME Investment (92.250) per HOME assisted unit? Total Cost/Unit HOME Investment/Unit 0 bedroom $_____________ $_________________ 1 bedroom $_____________ $_________________ 2 bedroom $_____________ $_________________ 3 bedroom $_____________ $_________________ 4+bedroom $_____________ $_________________ 2.INCOME LIMITS (92.203): Explain the procedures that will be used to determine the income of the beneficiaries of the project. 3.OCCUPANCY REQUIREMENTS (92.254): Indicate the total number of HOME-assisted units and the income limits for these families. _____ Total number of units _____ Total number of HOME units occupied by families earning 80% or less of the median family income. 4.PROPERTY STANDARDS (92.251) – Indicate and explain the property standards that will be used for existing units for homeowner rehabilitation, existing units for homeownership, and newly constructed units. If the units will be substantially rehabilitated, please explain the property standards that will be used. In addition, units built prior to 1978 must comply with the recently implemented Lead-Based Paint requirements (24 CFR Part 35), effective September 15, 1999. Please describe your procedures for compliance. 2021 HOME Proposal P-17 c/5-8-20 5.PROPERTY VALUE (92.254) – Indicate and explain how the units will meet the property standards in Section 92.251 and not exceed 95% of the median area purchase price as determined by HUD. Please explain the procedures that will be used to determine the property value. 6.LONG-TERM AFFORDABILITY (92.254) – Indicate the affordability period for the project. Explain how units assisted with HOME funds will comply with resale restrictions (92.254) or recapture provisions (92.254). Attach documents that will be used. 7.TARGETING OF HOME FUNDS (92.217) – Provide information that indicate that 100% of the HOME funds will be invested with respect to dwelling units that are to be occupied by households that qualify as low-income families at the time of occupancy or at the time funds are invested, whichever is later. 2021 HOME Proposal P-18 c/5-8-20 PROJECT INFORMATION SHEET TENANT-BASED RENTAL ASSISTANCE PROGRAM THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED As described in Section IV. Tenant-Based Rent Assistance, there are many federal rules that must be complied with. Please provide the information and describe how the project will comply with the federal rules and requirements outlined in Section IV. 1. What is the maximum HOME investment (92.209h) amount of monthly assistance? What is the minimum tenant contribution? Unit Fair Market Maximum Type ___Rent___ HOME _ Efficiency $ 931 $________ 1 bedroom 1,085 $________ 2 bedroom 1,429 $________ 3 bedroom 1,800 $________ 4 bedroom 1,936 $________ 5 bedroom 2,226 $________ 6 bedroom 2,517 $________ The minimum tenant contribution is: 2. INCOME LIMITS (92.216) – Explain the procedures that will be used to determine the income of the beneficiaries of the project. How often will income be re-examined? 3. PROPERTY STANDARDS (92.251) – Indicate and explain the procedures that will be used to comply with the property standards set forth in 982.401 Housing Quality Standards. In addition, for units built prior to 1978, explain how the recently implemented Lead- Based Paint requirements (24 CFR Part 35), effective September 15, 1999, will be met. 2021 HOME Proposal P-19 c/5-8-20 4. TARGETING OF HOME FUNDS (92.216a) – Explain and illustrate how the targeting of HOME funds will be met. How many families receiving such rental assistance are families whose annual incomes do not exceed 60% and 80% of the median family income for the area? 5. SECURITY DEPOSIT PROGRAM REQUIREMENTS (92.209j) – If the applicant is interested in developing a security deposit program, explain in detail what it is you propose to do. Will you be providing loans or grants to very low and low-income families for security deposits? The narrative should address all of the requirements in Section 92.209. 6. TENANT-BASED RENTAL ASSISTANCE PROGRAM REQUIREMENTS (92.209): a. CERTIFICATION (92.209b) – What are the local market conditions that lead to the decision to use HOME funds for rental assistance? b. TENANT SELECTION (92.209c) – Provide the tenant selection policy that will be used for this project. Explain the federal preferences and local preferences for individuals with special needs. c.EXISTING TENANTS IN THE HOME-ASSISTED PROJECT – Can the existing tenants residing in the units that are designated for rehabilitation or acquisition under the HOME Program be selected without requiring that the family meet the written tenant selection policies? If so, explain the procedures that will be used to select the tenant. 2021 HOME Proposal P-20 c/5-8-20 d. TERM OF RENTAL ASSISTANCE CONTRACT (92.209e)- Indicate the term of the rental assistance contract. e.RENT REASONABLENESS (92.209f) – Explain why the maximum HOME rents indicated in No. 1 above is reasonable as compared with comparable unassisted units. f.LEASE REQUIREMENT (92.253) – Explain the terms of the lease and attach a copy of the lease that will be used for this project. g.USE OF SECTION 8 ASSISTANCE (92.209l) – If assistance under the Section 8 Program becomes available, explain how the recipients of the HOME rental assistance program will qualify for tenant selection under the Section 8 Program. 2021 HOME Proposal P-21 c/5-8-20 EXHIBIT 2 EXTENT AND SERIOUSNESS OF THE IDENTIFIED NEED (100 Maximum Points) 1.Identify and clearly describe the extent and the seriousness of the need for your project. Explain why this project is needed and how your project will help address this need. 2.Describe the seriousness of the need and identify the need of the community in specific, quantifiable and measurable terms and submit necessary documentation based on recent available data to support the stated need. Include the area or location of the need. 2021 HOME Proposal P-22 c/5-8-20 EXHIBIT 3 CONSOLIDATED PLAN PRIORITIES (100 Maximum Points) 1. Clearly describe how this proposed project will comply and ultimately accomplish a priority(ies) of the County’s 2020-2024 Consolidated Plan. 2021 HOME Proposal P-23 c/5-8-20 EXHIBIT 4 – NEED FOR HOME FUNDS (100 Maximum Points) 1.Explain why HOME dollars are necessary for project implementation and why the proposed activities cannot occur without the HOME award. Fully describe the activities which will address the need, including all appropriate quantifiable information. Justify why the activity was selected to address the need. 2.State the amount and sources of other funds being requested for this activity. List unsuccessful requests your organization has made for other resources for this project, including sources, amount, and, if known, reasons for rejection. Explain why no other source of funds can replace HOME resources. Discuss whether the project could be implemented at a lower level or smaller scale without the HOME funds. Describe known public and private projects that address a similar need in your area and explain how this project differs from each other. 2021 HOME Proposal P-24 c/5-8-20 EXHIBIT 5 – RESULTS TO BE ACHIEVED (100 Maximum Points) 1.State your project’s overall goals and objectives. Describe the results you expect to achieve, the number and type of persons to benefit, and the nature of the benefit. Explain how the proposed activities are directly related to the problem and need described and what the anticipated direct and indirect results of the program will be. Include information on length of commitment to the original target population, the continued affordability of the assisted housing in terms of monthly rent or mortgage costs, and other program results that help illustrate the overall benefit of the proposal. 2.Describe the people who will benefit from the proposed project in terms of income, age, employment, status, etc. 3.Please indicate the number of households that will benefit from the activity. TOTAL HOME Family _____ _____ Elderly _____ _____ Persons with Disabilities _____ _____ Seriously Mentally Ill _____ _____ Dually-Diagnosed _____ _____ Persons with HIV/AIDS _____ _____ Veterans _____ _____ Other: ___________________ _____ _____ TOTALS _____ _____ 4.Please indicate the number of households assisted. TOTAL HOME Renters _____ _____ Owners _____ _____ 5.Out of the total number of beneficiaries, indicate the total number of female head-of-household beneficiaries there are for the proposed project. (Submit documentation to verify the statistics) Female Head of Households _____ 2021 HOME Proposal P-25 c/5-8-20 6.Out of the total number of beneficiaries, indicate the total number of minority households who will benefit from the proposed project: (Submit documentation to verify the statistics) _____White _____Black/African American _____Asian _____American Indian/Alaskan Native _____Native Hawaiian/Other Pacific Islander _____American Indian/Alaskan Native & White _____Asian & White _____Black/African American & White _____American Indian/Alaskan Native & Black/African Am _____Other Multi-Racial _____Asian/Pacific Islander _____Hispanic 7.Please indicate the income levels of households that will benefit from the activity. TOTAL HOME At or below 50% of median income _____ _____ At or below 60% of median income _____ _____ At or below 80% of median income _____ _____ Other___________________ _____ _____ Total Units _____ _____ 8.Please indicate the proportion of units for: Mobility Impaired ___ No. of units Hearing/Vision Impaired ___ No. of units *Affected projects must have 5% or at least one, whichever is greater, for mobility impaired and 2% but not less than one for hearing/vision impaired. 9.Please indicate the anticipated amount of HOME expenditures per HOME-assisted unit: $_________________ 10.Please indicate the total anticipated program income: $_________________ 11.Submit documentation to verify the above statistics. (i.e., Census Data) 2021 HOME Proposal P-26 c/5-8-20 EXHIBIT 6 – BUDGET AND FUNDING THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED (100 Maximum Points) 1.State the amount of HOME funds being requested for the activity. 2.Provide a detailed budget of the proposed project and its activities in the prescribed format provided or a comparable format. 3.Identify who did the estimates and what these estimates were based on. Provide documentation to support these estimates. 4.If other sources of funds will be used (i.e., County, State, private donations, etc.), state the amount, the source, the date of expected availability and expiration, submit documentation to verify that these funds are secured. 5.Specify what the HOME funds will be used for. 6.Explain your organization’s ability to access other funds and the overall attempts to obtain additional resources. 7.If you are requesting a loan, identify the repayment source and describe and justify your proposed terms. Also, explain the cost savings the HOME award would create versus your organization securing a conventional loan or other financing options available. Explain your organization’s ability to access other funds and the overall attempts to obtain additional resources. 8.If your organization is requesting a grant, submit justification on why your organization requires a grant versus a loan. Please provide documentation and explain the cost savings a grant will generate over a conventional loan or other financing options currently available. 2021 HOME Proposal P-27 c/5-8-20 9.If your project will generate project income, state the projected amount and the expected date to receive this program income. Under the HOME Program Rules, program income is required to be returned to the County. 10.For rental housing projects, a proforma based upon the applicable period of affordability must be submitted with the budget. (i.e., for new construction a proforma for 20 years must be submitted) Be sure your submitted budget identifies specifically what the HOME funds will be used for. Type of Funding Assistance Requested (check one). Grant: ____ Loan: ____ Other: ____ Note: If project is funded, letters of commitment from all sources of funding must be submitted. 2021 HOME Proposal P-28 c/5-8-20 HOME INVESTMENT PARTNERSHIPS PROGRAM BUDGET AND FUNDING SOURCES OF FINANCING – ALL SOURCES/ALL ACTIVITIES SOURCE/TYPE *COMMITTED *TENTATIVE TOTAL IF TENTATIVE DATE EXPECTED #HOME FUNDS $ $ $ #HOME FUNDS $ $ $ #HOME FUNDS $ $ $ #CDBG $ $ $ #OTHER FEDERAL $ $ $ $ $ $ $ $ $ STATE $ $ $ $ $ $ COUNTY $ $ $ $ $ $ $ $ $ PRIVATE ____________ $ $ $ _____________ ____________ $ $ $ _____________ ____________ $ $ $ _____________ ____________ $ $ $ _____________ OTHER ____________ $ $ $ _____________ ____________ $ $ $ _____________ ____________ $ $ $ _____________ ____________ $ $ $ _____________ ____________ $ $ $ _____________ TOTALS $ $ $ * IF PROJECT IS FUNDED, LETTERS OF COMMITMENT MUST BE SUBMITTED. NO HOME FUNDS WILL BE RELEASED WITHOUT PROOF OF COMMITMENT FROM ALL SOURCES. * FEDERAL DOLLARS ARE SUBJECT TO EXCESSIVE LAYERING REGULATIONS. 2021 HOME Proposal P-29 c/5-8-20 ADMINISTRATIVE BUDGET – ALL ACTIVITIES ITEMS TOTAL HOME $ OTHER $ SOURCE(S) APPLICATION PREP/TECH ASSIST $ $ $ __________ SALARY/WAGES $ $ $ __________ POSITION $ $ $ __________ POSITION $ $ $ __________ POSITION $ $ $ __________ POSITION $ $ $ __________ POSITION $ $ $ __________ EMPLOYEE RELATED EXPENSES $ $ $ __________ @_____% PROFESSIONAL SERVICES $ $ $ __________ SERVICE $ $ $ __________ SERVICE $ $ $ __________ SERVICE $ $ $ __________ TRAVEL $ $ $ __________ OFFICE SUPPLIES/EQUIPMENT $ $ $ __________ MARKETING (FAIR HOUSING) $ $ $ __________ OTHER (SPECIFY) $ $ $ __________ OTHER (SPECIFY) $ $ $ __________ OTHER (SPECIFY) $ $ $ __________ OTHER (SPECIFY) $ $ $ __________ OTHER (SPECIFY) $ $ $ __________ OTHER (SPECIFY) $ $ $ __________ TOTAL $ $ $ __________ *CARRY THIS AMOUNT TO “USES OF FINANCING AND HOME PROJECT BUDGET” LINE 13. 2021 HOME Proposal P-30 c/5-8-20 USES OF FINANCING AND HOME PROJECT BUDGET ALL ACTIVITIES ACTIVITY TOTAL HOME OTHER SOURCE (i.e., CDBG,CIP) 1 ACQUISITION LAND EXISTING STRUCTURES 2 SITE IMPROVEMENTS ON-SITE OFF-SITE ------- 3 CONSTRUCTION/REHAB. OTHER SITE WORK 4 CONSTRUCTION SUPERVISION 5 TENANT-BASED ASSISTANCE 6 FIRST-TIME HOMEBUYER 7 RELOCATION COSTS 8 PROJECT SOFT COSTS ORIGINATION FEES CREDIT REPORTS TITLE REPORTS & UPDATES RECORDATION FEES PREP. & FILING OF LEGAL APPRAISAL ATTORNEY’S FEES LOAN PROCESSING FEES DEVELOPERS FEES 9 CONSTRUCTION-RELATED COSTS ARCHITECTURAL FEES ENGINEERING FEES WORK WRITE-UPS/COST EST. DEVELOPERS FEES 10 PROJECT AUDIT COSTS 11 AFFIRMATIVE MARKETING & FAIR HSG 12 OPERATIONS/SERVICES 13 ADMINISTRATION ------ 14 TECHNICAL ASSISTANCE 15 ENVIRONMENTAL SURVEY 16 IMPACT FEES/TAP FEES 17 OTHER: 18 OTHER: 19 TOTALS 2021 HOME Proposal P-31 c/5-8-20 EXHIBIT 7 – LEVERAGING/MATCHING THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED (100 Maximum Points) Applicants applying for HOME funding are required to match every $1.00 of Federal HOME funds with at least $.25 of eligible matching funds. (See Appendix C for the eligible sources of matches). Describe and quantify all non-HOME resources that will assist with project implementation and management (discuss resources in the order listed on the “HOME Budget and Funding” form). Include a discussion that identifies whether commitments are firm or tentative and when and under what circumstances tentative commitments will become actualized. Briefly describe the general terms and conditions of other sources and give their expiration date. Explain the organization’s ability to access other funds or in-kind contributions and the overall attempts to obtain additional resources. For non-cash contributions, please detail how dollar amounts were calculated. Note: To meet the match requirement threshold, the OHCD requires the applicant to provide documentation and calculations on all forms of eligible match contributions to be provided. 2021 HOME Proposal P-32 c/5-8-20 EXHIBIT 8 – PROJECT SCHEDULE THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED The applicant must be able to expend the HOME funds in a timely manner. In order to comply with and meet State Housing and Community Development Corporation of Hawai i (HHFDC) requirements, all activities funded with HOME funds shall be committed, completed and expended within an eighteen (18) month period. The applicant should anticipate receiving funding on or about November 1, 2021. Project funds unencumbered may and will be reprogrammed to other projects. 1.Please accurately describe what the HOME funds will be spent on and the date you expect this expenditure to occur within the eighteen month period. 2.Please provide the OHCD with a schedule of the proposed project’s monthly activities and drawdown of HOME funds. Indicate the milestones (i.e., design, bid, construction, zoning changes, acquisition process, etc.) and anticipated start and completion dates of each milestone. Example: Start Completed Projected Milestones Date_ __Date___ Expenditure Environmental Review Project Design Bid/Advertisement Site Work Construction 2021 HOME Proposal P-33 c/5-8-20 EXHIBIT 9 – SITE SELECTION STANDARDS INFORMATION (Not Applicable for TBRA Projects) THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED (100 Maximum Points) 1.Are you in control of the project site, which means having fee simple title to the property, an executed lease agreement, executed option to purchase, agreement executed DROA? If not, at what point are you in obtaining site control and when do you anticipate having site control? Site Control Status ___ Own site – fee simple ___ Option to lease ___ Executed Ground Lease ___ Other (Describe) ___ Option to purchase Attach evidence of site control (example: deed, lease, agreement of sale, option agreement). 2.What is the asking price and what are the terms and conditions for purchase? The applicant is required to disclose all relevant information on the proposed property. 3.Are there any tax delinquencies? Yes____ No____ Unknown____ 4.Are there any mortgage delinquencies? Yes____ No____ Unknown____ 5.Are there any other liens/encumbrances on title? Yes____ No____ Unknown____ 6.Identify the present legal owner and the address of the proposed project site and if any existing facilities. 7.Please provide the following information regarding the proposed project site: Property Address:_____________________________________ City:__________________________ Zip Code:_____________ TMK:___________________________ Land Area:____________ Census Tract:__________________ Block Group:__________ Estimated Market Value:__________ Age of Facility:____ Assessed Value:________________ Current Zoning:_______ 2021 HOME Proposal P-34 c/5-8-20 8.Overall, is the location suitable for residential use: Suitable for homeownership? Yes____ No____ Suitable for rental? Yes____ No____ 9.Is there a likely presence of: Lead-based paint Yes____ No____ Unknown____ Asbestos Yes____ No____ Unknown____ 10. Does the property meet HUD’s Housing Quality Standards as is? Yes____ No____ Unknown____ 11. If not, what is the estimated level of construction required: New Construction __________ Rehabilitation __________ Minor Repairs __________ 12.If applicable, please indicate if any of the following conditions apply to the infrastructure servicing the project site by checking the appropriate category. Yes No N/A Road access to the site is adequate ___ ___ ___ Sewer capacity is adequate ___ ___ ___ Electrical service is adequate ___ ___ ___ Water service is adequate ___ ___ ___ 13.If the project does not have the appropriate infrastructure/utility services, describe and document any actions being taken to resolve any potential problems associated with the particular infrastructure deficiency. Describe the improvements required and the estimated costs. Address the off-site improvements such as water, sewer, drainage, roads, electrical, phone, cable, etc. 14.If the project site will be on leasehold property, provide details on the steps taken or will be taken to secure the project site. Please submit a copy of the lease. If a lease is not available at this time, describe the terms of the lease, the duration, etc., and what steps have been taken to secure a lease. The applicant is required to disclose all relevant information on the proposed property. 2021 HOME Proposal P-35 c/5-8-20 15.Attach location map(s) of the project site. The map should identify the site, parks, schools and competitive developments. Include schematics, and/or preliminary drawings, if available. 16.Will you have to obtain changes to, or exemptions from the following land use designations and code requirements in order to carry out your project? Indicate by checking “Yes” or “No” for each item. Yes No Yes No State Land Use __ __ Building Code __ __ District Boundary General Plan __ __ Zoning Code __ __ Development Plan __ __ Housing Code __ __ Subdivision Code __ __ Other ________ __ __ Requirements Will your project conform to the existing zoning for the property? If no, describe your plan of action for obtaining the appropriate zoning or zoning exemptions. List the variances and/or special use permits required. 17.If any answer to the above questions is “Yes,” identify the kinds of changes which are required as well as any actions taken toward obtaining the necessary clearances. 18.Identify the benefits in use or disclose any potential problems associated with your proposed site. 2021 HOME Proposal P-36 c/5-8-20 EXHIBIT 10 – ENVIRONMENTAL CONSIDERATIONS THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED (100 Maximum Points) A Federal environmental review that complies with 24 CFR Part 58-Environmental Review Procedures for Entities Assuming HUD Environmental Responsibilities is required if your proposal is accepted to be funded. However, information relating to environmental concerns at the selection stage can have a significant impact on your proposal. The extent to which an applicant has considered and acted upon potential environmental concerns are important. Therefore, please indicate the level of environmental review that is required based on the type of activity funded with HOME funds. Please indicate which of the following environmental concerns are applicable to your project by checking “Yes” or “No.” In addition, please provide and submit information and documentation, if there are any, on environmental concerns. Please explain if your proposed project has a completed final Environmental Assessment (EA) that complies with 24 CFR Part 58, and whether any permits or clearances related to the aforementioned environmental concerns have been obtained. Projects having completed a state and federal environmental assessment will rate higher in the selection process. Please indicate the level of environmental review required for your proposed project. _____ Exempt Activity _____ Categorically Excluded/Exempt Activity _____ Categorically Excluded Activity _____ Environmental Assessment (EA) _____ Environmental Impact Statement (EIS) Yes No The project will affect a property that is 50 years ___ ___ or older and therefore eligible or designated as a historic site on the State or National Registers of Historic Places. The project site is located within a flood plain ___ ___ and requires flood insurance and compliance with flood plain management decision making (8-step) process. 2021 HOME Proposal P-37 c/5-8-20 Yes No The project site is located within a wetland ___ ___ which Requires consistency review from the U.S. Dept. of Army Corp. of Engineers. The project site will increase density in ___ ___ volcanic hazards 1 and/or 2. The project will require a major Shoreline ___ ___ Management Permit (SMA). The project has received an SMA approval. ___ ___ The project will affect endangered species or ___ ___ their habitats. Will your proposed project trigger compliance ___ ___ with Chapter 343 of the Hawai i Revised Statutes? (Environmental Impact Statement) Are there any known environmental issues with the site? Airport Clear Zone ___ ___ Known Prior Industrial Use ___ ___ Other Known Environmental Concerns ___ ___ Are there any neighborhood factors which negatively impact the site? Crime, Drugs, other Safety Concerns ___ ___ Traffic, Noise, other environmental factors ___ ___ Incompatible Non-Residential uses nearby ___ ___ If any answer to the above questions is “Yes”: Has a final Environmental Assessment (EA) been ___ ___ Completed for the project? If “Yes,” please submit a copy of the Environmental Assessment. Have any of the permits or clearances related ___ ___ to the aforementioned environmental concerns been obtained? If “No,” identify any actions taken toward ___ ___ obtaining these permits and/or clearances. 2021 HOME Proposal P-38 c/5-8-20 EXHIBIT 11 – ADDITIONAL ACTIONS (50 Maximum Points) If the project does not fully address the identified need, describe further actions which may be appropriate or necessary to resolve the problem. Supporting information and documentation should be provided. Describe and provide documentation, where necessary, to indicate what other resources or activities are needed to ensure a complete project/program will be available. If such support is not documented, or if the need is evident but not addressed, the impact of the proposal may be diminished. Discuss the magnitude and duration of the problem and its impact on the target population and the community-at-large. Give details and documentation to show community outreach or support for your project. 2021 HOME Proposal P-39 c/5-8-20 EXHIBIT 12 – COMPLIANCE WITH FEDERAL OVERLAY STATUTES (50 Maximum Points) Below is a list of federal overlay statutes that may apply to your particular project. Please review the statutes and if you check yes to any of the following, please describe your procedures on a separate sheet of paper for complying with the following federal rules. Please refer to Appendices G and I for a brief description of the rules. Please note: Should your project be selected for funding, the OHCD will require the applicant to submit documentation to ensure compliance. Failure to conform with the applicable statutes will be grounds for non-compliance, and any agreements to utilize the HOME funds may be terminated and the County will recapture the HOME funds. COMPLIANCE REQUIRED Yes No 1. Equal Employment Opportunity & Fair Housing ___ ___ -Discrimination on the basis of race, color, religion, sex, sexual orientation, age, HIV infection, disability, ancestry/national origin, familial status, marital status, or disability is prohibited ___ ___ 2. Section 504 of the Rehabilitation Act ___ ___ -Accessibility requirements & reasonable accommodations 3. Section 3 - Training & Employment Opportunities ___ ___ for low-income residents 4. Affirmative Marketing (Attachment G) ___ ___ 5. Minority/Women’s Business Enterprise ___ ___ (Attachment I) 6. Environmental Review ___ ___ 7. Displacement/Relocation/Acquisition ___ ___ 8. Federal Labor Standards (Davis-Bacon) ___ ___ -Activities involving 12 or more units 9. Lead-Based Paint (Pre 1978 Units) ___ ___ 10. Conflict of Interest ___ ___ 11. Debarred and Suspension ___ ___ 12. Flood Zones – Federal Funds not usually provided ___ ___ in FEMA designated flood areas 13. OMB Circulars A-110, A-122, A-87 ___ ___ 24 CFR Part 84 & 85 (financial procedures) 14. OMB Circulars A-133 Audits ___ ___ 15. Drug Free Workplace ___ ___ 16. Anti-lobbying provisions ___ ___ 2021 HOME Proposal P-40 c/5-8-20 EXHIBIT 13 – PROJECT MANAGEMENT (100 Maximum Points) 1.Name of the agency or person who will manage, coordinate, and implement the proposed project: ______________________________________________________ 2. Address: _____________________________________________ _____________________________________________ 3.Contact Person and staff primarily responsible to oversee and implement the project: ______________________________________________________ 4. Phone Number: ________________ Fax Number: ___________ 5. Describe your organization’s management ability. Describe the mission, management structure, and staffing of your organization. Provide a detailed description of your organization’s experience and ability in implementing and managing projects. Explain any past or current experience with federal or state award or loan programs. Provide an organizational chart showing the staffing and lines of authority for the key personnel to be used in the project. Give a brief job description of the overall duties of the staff assigned to manage the program during each phase, a description of related experience, and how the management plan will be structured. If staff has not been hired, provide a job description for each vacant position. If a third party will be involved in management, describe their role. 6. Describe the accounting/record keeping system used by your organization (i.e., manual, computer software, etc.). Indicate whether it complies with applicable OMB Circulars governing financial management and audits. 2021 HOME Proposal P-41 c/5-8-20 EXHIBIT 14 – PAST PERFORMANCE (100 Maximum Points) Indicate if your organization received other HOME grants or other Federal, State, local, or private financial assistance in the past. If yes, briefly describe the program or project(s) for the last five (5) years. If there were no programs or project(s) within the last five (5) years, briefly describe the last program or project(s) funding received and include: 1.Project Title(s) ______________________________________________________ 2.Project Amount(s) ______________________________________________________ 3.Project Status ______________________________________________________ 4.Project achievement and if there were any problems encountered. ______________________________________________________ 5.Explain any delays encountered and the reasons for the delays. ______________________________________________________ 6.Identify any audit finding(s) from your previous audit(s) and explain the status of the finding(s). Also, explain what your organization is doing to eliminate or reconcile the finding(s). ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ ______________________________________________________ 2021 HOME Proposal P-42 c/5-8-20 EXHIBIT 15 – DISPLACEMENT/RELOCATION/ACQUISITION THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED 1.If your project will entail permanent or temporary displacement or relocation of families and businesses: a.Your project will be required to comply and meet the relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, under 49 CFR Part 24, and as required under Section 104(d) of the Housing and Community Development Act of 1974, as amended. Please contact the OHCD for a copy of these federal regulations. b.Please submit a copy of a draft or final relocation plan that describes in detail, your procedures to minimize involuntary relocation, the availability of comparable replacement units within the project area, and how and with what resources these activities will be funded as required under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970. c.Submit a tentative notification schedule and the types of notices that your organization plans on utilizing for your project. d.Should your project be selected for funding, documentation indicating compliance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended, will be required to be submitted. 2.If your project will involve the acquisition of real property, and there are existing tenants, the property is subject to the Uniform Relocation Act and the requirements of 49 CFR part 24. Please contact the OHCD for a copy of these federal regulations. How many units are occupied? ____ How many existing residents are low income? ____ How many existing residents are very-low income? ____ How many residents will have to be relocated? ____ What is the current unit size(s)? ____ 2021 HOME Proposal P-43 c/5-8-20 a.Explain the procedures that will be undertaken to acquire the proposed project site and when the acquisition process will begin and be completed. b.Please submit documentation on the value of the property to be acquired and explain how the value was determined. c.Should your project be selected for funding, documentation indicating compliance with the Uniform Relocation Assistance and its requirements of 49 CFR Part 24 will be required to be submitted. 3. If this project is for homeownership, are the area residents interested? Yes___ No___ Unknown___ If yes, how many? _________ 2021 HOME Proposal P-44 c/5-8-20 EXHIBIT 16 – APPLICANT INFORMATION THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED In order to receive HOME funds, the applicant must be eligible under HUD regulations. The following documents must be attached to this exhibit: ___ Articles of Incorporation ___ By-Laws ___ IRS Exemption under Section 501(c) ___ List of Current Board of Directors and evidence that the Board Members are volunteers ___ Board of Director composition ___ Most Current Financial and Program Audit ___ Procedures of non-discrimination 2021 HOME Proposal P-45 c/5-8-20 EXHIBIT 17 CERTIFICATION OF AUTHORIZING OFFICIAL/RESOLUTION THRESHOLD FACTOR-REQUIRED TO BE ADDRESSED 1.To the best of my knowledge, the statements in this proposal are true and correct. 2.I hereby authorize the Office of Housing and Community Development to obtain further information and to verify any statements made as it deems necessary. 3.The applicant will comply with and certify all HOME Program regulations, policies, guidelines, and requirements as set forth in this proposal. 4.The applicant certifies that they have read and will comply with all aspects of Exhibit 11 (Compliance with Federal Overlay Statutes), as applicable. 5.The applicant assures the County that it will provide sufficient funds to cover any cost overrun to complete the project and, where required by its by-laws, the Board of Directors have duly passed a resolution authorizing its authorized official to file this proposal and provide further information to the County. 6.I certify that I am authorized on behalf of _____________________________ to submit this proposal, (name of applicant) to carry out the proposed project/activity pursuant to its charter and by-laws and comply with the standards for private non-profit entities established by HUD and the County of Hawai i. (Please submit resolution authorizing filing and submittal). _________________________ ________________________ Signature Date _________________________ ________________________ Typed Name Typed Title